President William Ruto has officially signed the Sovereign Wealth Fund Bill, 2026, into law, marking a major milestone in Kenya’s economic management strategy. The newly established fund is designed as a vital investment vehicle to preserve wealth generated from the country’s natural resources, ensuring that the prosperity created by these assets benefits future generations.
Speaking during the assent ceremony at State House Nairobi, President Ruto emphasized that the legislation alters how the nation safeguards its wealth, shifting the focus from immediate consumption to long-term economic sustainability. The fund becomes the second major financial institution created under the government’s economic transformation agenda, following the launch of the National Infrastructure Fund earlier this year.
The Sovereign Wealth Fund is structured around three distinct operational windows to manage national revenues prudently. The Stabilisation Fund is tasked with cushioning the Kenyan economy against unpredictable external shocks and global market volatility. Meanwhile, the Strategic Investment Window will directly finance major national development projects, helping to stimulate economic growth and create employment opportunities.
The final arm, designated as the Future Generations window or the Urithi Fund, is mandated to invest a dedicated portion of petroleum and mineral revenues specifically for future citizens. Under the provisions of the new law, exactly 30 percent of all revenues derived from petroleum and mineral resources will be channeled directly into the Urithi Fund, while the remaining balance will be utilized to support broader economic stability and strategic state investments.
The implementation of this framework comes at a crucial time as Kenya prepares to commence commercial oil production in Turkana’s Lokichar Basin and expands efforts to extract newly confirmed strategic and industrial mineral deposits across the country.
President Ruto noted that the legislation was heavily inspired by highly successful global benchmarks, specifically pointing to Botswana’s Pula Fund and Norway’s world-class $2.2 trillion Government Pension Fund. Reflecting on past domestic challenges, the President cited the historical titanium extraction in Kwale, where finite mineral resources were completely exhausted without leaving behind any lasting, tangible wealth for the nation.
He stated that the new fund aims to rectify these past missteps, ensuring that every extracted barrel of oil or unit of mineral becomes a permanent financial asset that never runs dry.
To guard against political interference and mismanagement, the Sovereign Wealth Fund Act establishes a strict framework of institutional accountability and transparency. The law mandates independent professional management of the fund’s assets, backed by rigorous parliamentary oversight, regular public reporting, and robust auditing mechanisms. President Ruto declared that the fund belongs strictly to the Republic of Kenya rather than any sitting administration, pledging that every single shilling will be guided by financial prudence.
The signing ceremony was attended by prominent political figures, including Deputy President Kithure Kindiki and National Treasury Cabinet Secretary John Mbadi, alongside leading private sector executives who praised the law for its potential to de-risk public investments and attract fresh global capital.
