The High Court has allowed the implementation of the proposed Sh5 trillion National Infrastructure Fund to proceed but placed it under strict judicial oversight by directing the National Treasury to submit certified accounts and transaction reports every three months pending the outcome of a constitutional petition.
Delivering the ruling on Thursday, Justice Patricia Mande declined to suspend the fund entirely, opting instead to mandate regular financial disclosures to ensure transparency and accountability in managing public resources.
Treasury Ordered to Disclose Transaction Details
Under the court order, the National Treasury must disclose the exact dates when funds are deposited into accounts at the Central Bank of Kenya (CBK) or designated commercial banks under Section 40 of the Public Finance Management Act.
Justice Mande further required the State to provide a comprehensive record of all expenditures, allocations, and transactions drawn from the fund. The Treasury must continue submitting these quarterly reports, with the first filing due on November 30, 2026, until the court hears and determines the constitutional challenge.
Justice Mande explained that the reporting mechanism maintains active judicial oversight while the court considers the broader legal questions surrounding the fund.
Petitioners Challenge Ruto-Backed Fund
Petitioners Kemunto Ateka, Frego Engineering Company Limited, and others filed the lawsuit challenging the legality of the President William Ruto-backed initiative. They argue that the fund establishes a structure that could allow the government to bypass the constitutional public finance management framework, potentially eroding transparency, accountability, and parliamentary oversight.
While the court chose not to halt the fund’s rollout at this stage, it reiterated that continuous reporting will protect public resources throughout the proceedings.
The upcoming constitutional petition will ultimately determine whether the creation and operation of the National Infrastructure Fund align with Kenya’s Constitution and public finance laws.
