Kenya’s proposed Sovereign Wealth Fund (SWF) will feature a strict election-year safeguard requiring all funds under its management to undergo mandatory auditing and certification before every General Election. The measure seeks to prevent politically motivated spending as elections draw near.
According to the Draft Kenya Sovereign Wealth Fund Bill, 2025, “the monies standing to the credit of the Fund, at least three months prior to every General Election, shall be certified by the Board and submitted to the Auditor-General.”
This clause forms the backbone of the proposed fund, which will collect and invest revenues from oil, gas, and mineral resources. Its autonomy is further reinforced by an exemption from the State Corporations Act, allowing it to operate outside the usual bureaucratic confines that govern parastatals.
Operating as a special government fund held in trust by the Treasury, the SWF will maintain its accounts primarily with the Central Bank of Kenya, while the Treasury Cabinet Secretary will determine allocations.
Globally, sovereign wealth funds serve as state-owned investment vehicles, some designed for stabilisation, others for long-term development, or both.
Kenya’s version will have three key pillars:
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Stabilisation Fund – to cushion the economy against market and commodity shocks.
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Strategic Infrastructure Investment Fund – to finance major national projects.
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Future Generation (Urithi) Fund – to preserve wealth for future citizens.
The Bill’s framework underscores the Treasury’s intention to institutionalise fiscal discipline and transparency. It requires quarterly reports, annual audits, and introduces tough penalties for misuse, including double restitution, fines of at least KSh 10 million, and a minimum five-year prison sentence.
By mandating pre-election certification, the law would act as a fiscal firewall, preventing last-minute withdrawals or politically driven disbursements during election periods.
Additionally, the Fund will be barred from issuing loans or being used as collateral and will be permitted to hold foreign currency assets under the guidance of the Central Bank.
The election-year clause effectively links the Fund’s credibility to the Auditor-General’s office, ensuring incoming governments inherit a verified financial position.
The Treasury has invited public feedback on the proposed Bill until Friday, 7 November 2025.
