Kenya’s proposed Sovereign Wealth Fund (SWF) will introduce an election-year safeguard requiring that all funds under its control be audited and certified before every General Election, a move aimed at insulating public money from last-minute political spending.
- •The Draft Kenya Sovereign Wealth Fund Bill, 2025 provides that “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.”
- •The safeguard sits at the heart of the proposed Kenya Sovereign Wealth Fund, which will collect and invest revenues from oil, gas, and mining.
- •The Fund’s independence is further reinforced by an exemption clause that places it outside the State Corporations Act, freeing it from the bureaucratic controls that govern parastatals.
The fund will operate as a special government fund owned by the Treasury in trust for the country. According to the draft structure, the fund will primarily bank in a special account at the Central Bank, with the Treasury Cabinet Secretary determining allocations.
Sovereign wealth funds are investment vehicles owned by countries. Most act as an investment account, or as a development tool, or a combination of the two.
The Fund is designed to stabilise the budget, finance infrastructure, and build long-term savings through three distinct components:
- •Stabilisation Fund – to cushion against economic and commodity shocks;
- •Strategic Infrastructure Investment Fund – to fund national development projects; and
- •Future Generation (Urithi) Fund – to preserve wealth for future citizens.
The Bill’s general architecture signals Treasury’s intent to embed fiscal stability within the country’s governance framework. It mandates quarterly reporting, annual audits, and severe penalties for misappropriation — including double restitution, fines of at least Sh10 million, and a minimum five-year jail term.
The election year safeguard is seen as a step toward entrenching financial accountability across election cycles, ensuring that Kenya’s mineral and petroleum earnings, often subject to shifting political priorities, remain protected during transitions of power.
By requiring pre-election certification and reporting, the Bill effectively creates a fiscal firewall preventing sudden withdrawals or politically motivated spending in the months leading to elections.
Another critical safeguard is that the fund will be restricted from offering credit or being used as collateral for borrowing. It will also be allowed to hold foreign currency assets in consultation with the CBK.
The election-year clause ties the Fund’s credibility to the office of the Auditor-General, ensuring that incoming administrations inherit a verified fiscal position.
Treasury has invited public participation until Friday November 7, 2025.
