Treasury Announces Sh310.6 Billion Infrastructure Fund Amid Safaricom Sale Court Battle

Kenya’s National Treasury has announced that the National Infrastructure Fund has been capitalised with Sh310.6 billion, drawing attention to the government’s plans to finance infrastructure development amid a legal dispute over the Safaricom stake sale.

According to the Treasury, the fund comprises Sh106.3 billion from the Kenya Pipeline Company (KPC) initial public offering (IPO) and Sh204.3 billion from the sale of the government’s stake in Safaricom.

However, the Safaricom transaction faces a major legal hurdle after the High Court declared the sale unconstitutional, invalid, null and void on September 15, 2026.

The court ruled that the process violated constitutional and legal requirements, including those relating to public participation, transparency and accountability in public finance. It also ordered the restoration of the shares to government ownership.

The disputed transaction involved the sale of 15 per cent of the government’s shareholding in Safaricom to Vodafone Kenya Limited, a subsidiary of Vodacom Group, for approximately Sh204.3 billion.

The government has challenged the High Court ruling, arguing that the transaction was lawful and intended to unlock resources for national development. However, the Court of Appeal declined to suspend the High Court decision in October, leaving the orders in force as the legal dispute continues.

The National Infrastructure Fund is intended to support the financing of major infrastructure projects. The inclusion of proceeds from the two transactions highlights the government’s efforts to mobilise resources for development beyond traditional financing methods.

The latest Treasury announcement comes as questions remain over the legal status of the Safaricom proceeds and the implications of the court ruling for the fund.

The ongoing dispute is expected to remain a key issue as the government pursues its appeal and seeks to defend the transaction.

Further clarification on how the legal proceedings affect the reported capitalisation and availability of the funds will be important in determining the next steps for the National Infrastructure Fund.

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