Co-operative University of Kenya Chancellor Dr Benard William Chitunga has warned that Kenya’s proposed National Infrastructure Fund (NIF) could be depleted through political interference if it is placed under direct government control.
In a governance paper on the Kenya National Infrastructure Fund, Dr Chitunga addressed growing public concerns over why the fund should be privately incorporated rather than run as a government department.
He noted that debate has intensified across Kenya, with questions emerging about transparency, accountability, and what could be hidden within a corporate structure managing billions in infrastructure financing.
Dr Chitunga explains that globally, sovereign and infrastructure funds are often established as separate corporate entities to protect operations from excessive bureaucracy and short-term political pressure.
The Co-operative University of Kenya Chancelor Dr Benard William Chitunga showcasing cutting-edge environmental laboratories for the School of Co-operative and Community Development at Co-operative University on January 25, 2025.
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The Co-operative University of Kenya
”Governments around the world have structured sovereign funds, including those focused on infrastructure or broader investments, as separate corporate or private entities rather than direct extensions of government agencies for several reasons: operational independence, enhanced governance, and the ability to pursue commercial objectives without excessive government bureaucracy or political interference”, stated Dr Chitunga.
According to Dr Chitunga, the NIF fund of Ksh5 trillion that President William Ruto will be seeking to raise, with Ksh2.5 trillion to be obtained by April, will be a litmus test for the government in terms of management of huge funds, but also will be a learning curve at the very same time for the corporate world.
He argued that professional, market-driven management becomes easier under a corporate model, allowing funds to attract skilled talent and pursue commercial objectives without constant government interference.
”By operating as private-like entities, these funds can attract professional talent, implement market-driven strategies, and mitigate risks associated with direct government control,” he states in the paper.
He adds that such a structure allows targeted long-term investments in energy, transportation, and technology while still aligning returns with national development goals and government oversight.
Dr Chitunga cites Temasek Holdings, a wholly owned subsidiary of the Singapore government that operates as a private limited company with a portfolio valued in the hundreds of billions.
He also references GIC Private Limited, from Singapore, and Mubadala Investment Company, from the United Arab Emirates (UAE), as corporate entities that have successfully invested in infrastructure, energy, and technology across global markets.
Further examples include the Public Investment Fund of Saudi Arabia and India’s National Investment and Infrastructure Fund, both structured to attract foreign capital into domestic infrastructure projects.
According to the paper, this corporate model has enabled sovereign funds worldwide to grow their combined assets to exceed $11 trillion while supporting infrastructure sectors such as renewable energy, logistics, and digital connectivity.
For instance, Temasek has achieved annualised returns of about 6 to 7 per cent over decades, while Saudi Arabia’s PIF has invested billions in green hydrogen and renewable energy projects.
”This corporate or private entity model has proven effective by enabling professional, market-oriented management that delivers strong financial returns while advancing national objectives,” Dr Chitunga notes.
He concludes that Kenya’s National Infrastructure Fund should adopt a corporate structure, while calling for merit-based appointments, zero tolerance for corruption, and strong transparency to safeguard the billions allocated to national development.
Co-operative University of Kenya delegation led by Dr. Chituga during the showcasing cutting-edge environmental laboratories for the School of Co-operative and Community Development at Co-operative University on January 25,2025.
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The Co-operative University of Kenya