The National Infrastructure Fund (NIF), led by James Mworia, aims to preserve its Sh310 billion seed capital while generating roughly Sh40 billion a year in investment income to act as equity for commercial infrastructure projects.

Mworia’s model would combine that annual income with private‑sector capital, illustrated by a scenario where Sh40 billion of NIF income is matched by Sh100 billion from capital‑market investors, creating a Sh140 billion equity pool that could support up to Sh400 billion of project‑level debt.

The fund would invest through special‑purpose vehicles for each project, allowing the equity to be used as anchor capital while banks and other lenders provide the majority of financing.

Why pension funds are central to the financing plan

Kenya’s pension industry holds over Sh3 trillion in assets, making it the largest institutional pool for long‑duration investments such as highways, airports and power plants.

To overcome liquidity constraints, Mworia proposes a listed NIF Infrastructure Development Fund on the Nairobi Securities Exchange, giving pension managers exposure to a diversified infrastructure portfolio that can be bought and sold like any other security.

A listed vehicle also sidesteps political sensitivities around private ownership of strategic assets by providing a transparent, market‑based ownership structure.

Steps needed to turn the model into transactions

Mworia has called for a Sh50 billion co‑investment fund to be set up within three months, which would serve as the first concrete vehicle for attracting private capital.

The fund is also discussing a US$100 million (about Sh12.94 billion) Project Preparatory Fund with development finance institutions to ready projects for financial close before institutional investors commit.

Projects must meet an Investment Policy criterion of supporting at least 60 percent non‑recourse debt, ensuring they can sustain substantial project‑level borrowing without relying on NIF guarantees.