National Treasury and Economic Planning Cabinet Secretary John Mbadi has defended the government’s economic reform agenda. The CS says the newly enacted Sovereign Wealth Fund, for instance, would bolster Kenya’s long-term economic stability, despite critics arguing the country should first achieve budget surpluses.
Speaking after the assent of the Sovereign Wealth Fund Bill into law by President William Ruto, Mbadi described the legislation as a significant milestone in establishing a sustainable economy founded on fiscal discipline, fairness, and intergenerational prosperity.
“Our economic policies are not just about managing the present, they must also focus on building the future. Our delivery guardrails are built around fiscal discipline, sound planning, and broad participation,” Mbadi stated.
According to Mbadi, the Sovereign Wealth Fund has been modelled on successful international examples to ensure Kenya builds long-term national wealth while safeguarding future generations.
“Some of the proposals that are in the Sovereign Wealth Fund Bill 2025 are informed by lessons that we have learned and best practices from other countries that have experienced significant economic progress by putting in place economic measures that deliver economic stability,” he explained.
He noted that the Treasury had studied sovereign wealth funds in countries such as Norway, Singapore, Saudi Arabia, Botswana, Nigeria, Kuwait, and Qatar before developing Kenya’s framework.
Mbadi highlighted that the new law incorporates a robust governance structure to ensure the prudent management of public resources. This includes oversight by the Auditor-General, the Controller of Budget, Parliament, and the National Treasury, guaranteeing transparency and accountability in the fund’s management.
The CS dismissed criticism that Kenya should only establish a sovereign wealth fund after recording budget surpluses, arguing that delaying the initiative would merely postpone the country’s economic transformation.
“I know we have many naysayers who have kept lecturing us on the need to have a Sovereign Wealth Fund only when we have budget surpluses. Let me tell them, the best time to start was yesterday. The second-best time to start is right now. We must build momentum instead of waiting for a perfect moment that may never come,” he asserted.
Mbadi added that recent growth in pension savings, following government reforms, demonstrates the benefits of making bold policy decisions rather than waiting for ideal economic conditions.
The Treasury CS also addressed criticism regarding his strong support for President William Ruto’s administration, despite his past affiliation with the Orange Democratic Movement (ODM). He dismissed suggestions that he had abandoned his political principles, arguing that the Kenya Kwanza and former Azimio coalition manifestos contained significant similarities on economic reforms.
“When I make reference to the actualisation of the Kenya Kwanza Manifesto, many people perceive me as a man at odds, and at times refer to me as the biblical Saul. But far from it. Both the Kenya Kwanza and Azimio Coalition Manifestos had many resemblances,” he stated.
Mbadi said that the late ODM leader, Raila Odinga, appreciated the need for bipartisan cooperation in implementing overdue economic reforms. He added that discussions on establishing institutions such as the National Infrastructure Fund and the Sovereign Wealth Fund predated the formation of the broad-based government.
“I am proud that the late Right Honourable Raila Odinga saw it fit that coming together as a country was critical in the furtherance of much-needed economic reforms which had been overly delayed,” he said.
He maintained that the Sovereign Wealth Fund is not merely another government institution, but a strategic economic instrument intended to promote fiscal stability, finance development priorities, and safeguard wealth for future generations.
Mbadi reiterated that the government’s focus remains on implementing reforms that strengthen the economy, improve public finances, and deliver long-term prosperity for Kenyans, insisting that sustainable economic transformation requires decisive leadership rather than political expediency.
The Treasury CS described the current Parliament as one of the most impactful in Kenya’s economic history, citing the enactment of the Privatisation Act, the Government-Owned Enterprises Act, the National Infrastructure Fund Act, and now the Sovereign Wealth Fund Act as landmark reforms designed to transform the country’s economic governance.
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