Kenyans and other stakeholders have until 26February to submit their views on the draft Sovereign Wealth Fund Bill, 2019 and on Kenya’s draft Sovereign Wealth Fund Policy. This is in line with constitutional requirements to get comments from the public and relevant stakeholders on matters of public finance.
The policy paper and bill on Sovereign Wealth Fund have been created to help the country manage its expected revenue from oil and minerals exploration. Kenya is set to start commercial production of oil in the year 2021.
The policy paper contains guidelines on the establishment, management and objectives of the Sovereign Wealth Fund. On the other hand, the bill contains laws that will ensure effective administration and proper management of revenues from oil and minerals exploration.
Most countries that earn income from natural resources have Sovereign Wealth Funds. They also have laws that govern the use and distribution of revenue contained in these funds.
By establishing the wealth fund, Kenya joins African nations with Sovereign Wealth Funds such as; Angola, Rwanda, Libya, Morocco, Nigeria and Botswana.