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President William Ruto has signed the Sovereign Wealth Fund Bill, 2026 into law, paving the way for the establishment of a national fund aimed at safeguarding wealth generated from Kenya’s natural resources while supporting long-term economic development.
The historic signing ceremony took place at State House, Nairobi, where President Ruto described the legislation as a transformative step towards securing the country’s financial future and ensuring that revenues from petroleum, minerals and other strategic natural resources benefit both present and future generations.
The newly enacted law creates three distinct investment windows designed to strengthen Kenya’s economy and improve fiscal sustainability.
These include the Stabilisation Fund, the Strategic Investment Window and the Urithi Fund, each serving a unique role in managing the country’s resource wealth.
The Stabilisation Fund will cushion the economy during periods of financial uncertainty by providing a reserve that can be accessed during economic shocks, declining commodity prices or national emergencies.
Government officials say the fund will help shield public finances from volatility and enhance macroeconomic stability.
The Strategic Investment Window will channel part of the country’s resource revenues into financing critical infrastructure and national development projects.
The government believes this approach will reduce Kenya’s reliance on external borrowing and foreign donor support while accelerating investments in sectors that stimulate economic growth.
Perhaps the most significant component of the law is the Urithi Fund, which will receive 30 per cent of revenues earned from petroleum and other natural resources.
The fund is intended to preserve wealth for future generations, ensuring that non-renewable resources leave behind a lasting economic legacy even after they are depleted.
Speaking during the signing ceremony, President Ruto said the Sovereign Wealth Fund reflects the government’s commitment to responsible resource management, transparency and intergenerational equity.
He noted that countries rich in natural resources must adopt prudent financial strategies to convert finite resources into sustainable national prosperity.
Economists have long advocated for the establishment of a sovereign wealth fund, arguing that it provides a structured mechanism for saving surplus revenues, stabilising government finances and financing strategic investments that create lasting value.
The law is also expected to strengthen investor confidence by providing a clear legal framework for managing revenues from Kenya’s emerging extractive industries.
As exploration activities continue across the country, the government believes the fund will ensure that future resource earnings are invested prudently and equitably.
With the Sovereign Wealth Fund Bill now officially enacted, Kenya joins a growing number of nations that have established sovereign wealth funds to safeguard national assets, promote economic resilience and secure prosperity for generations to come.
The legislation marks a significant milestone in the country’s broader agenda of building a more stable, self-reliant and sustainable economy.
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