Treasury Cabinet Secretary John Mbadi has admitted that the proposed Sh5 trillion National Infrastructure Fund was never incorporated, contradicting earlier assurances to Parliament that the entity existed and was duly registered.
In January while speaking in Kakamega, Mbadi stated: “We have formed a company already to manage this fund. We want it managed professionally... We don't want a fund that will be managed at the National Treasury alone.”
He further swore before lawmakers that the fund had been registered.
However, in a subsequent clarification, the CS acknowledged that no company had been incorporated.
He said the only formal step taken was the reservation of the proposed name “National Infrastructure Fund” on December 19, 2025 — a reservation that has since lapsed.
The admission comes as the High Court of Kenya probes the legality of the proposed fund, which was projected to mobilise more than Kenya’s entire annual budget.
The court is examining whether due process was followed and whether constitutional safeguards governing public finance were bypassed.
The controversy has raised critical questions over who authorised the fund’s rollout, what information was presented to Parliament, and whether lawmakers were misled.
The National Infrastructure Fund had been presented as a vehicle to finance large-scale infrastructure projects outside the conventional budget framework.
Its scale — Sh5 trillion — sparked immediate scrutiny from financial experts and legislators.
As the legal challenge unfolds, attention is now shifting to accountability within the National Treasury and the integrity of disclosures made to Parliament.