President William Ruto has signed the Sovereign Wealth Fund Bill, 2026, creating a state savings mechanism designed to preserve income from Kenya’s oil, gas, and mineral resources for the long term. The new law marks a major shift in how the country plans to manage future resource wealth.
At State House Nairobi, Ruto described the law as an important milestone in Kenya’s handling of natural wealth. The legislation also places strict limits on the fund, including a ban on borrowing against it or using it as collateral for loans.
How the fund is structured.
The fund is divided into three parts, each with a distinct role.
- The Stabilisation Fund will help cushion the economy during global shocks or sudden drops in resource prices.
- The Strategic Investment Window will support development projects and job creation.
- The Urithi Fund, named after the Swahili word for inheritance, will serve as a permanent savings pool for future generations.
By law, 30% of oil and mineral revenues will go directly into the Urithi Fund.
Rules for managing the money.
The remaining 70% of resource revenues will be split between the stabilisation and strategic investment components. A dedicated board will oversee the fund, with participation from cabinet secretaries for finance and mining as well as independent finance professionals.
The law also prohibits the fund from being placed in high-risk or speculative investments, adding another layer of protection around the country’s resource earnings.
What the fund changes.
The timing is significant. Kenya has recently completed its first nationwide survey of earth resources, which confirmed substantial deposits of industrial and strategic minerals.
That makes the new law more than a policy statement. It is a framework for turning natural wealth into long-term national value, rather than allowing a short-term boom to disappear without lasting benefit. Source Citizen Digital
For Kenya, the message is clear: the goal is not only to earn from resources today, but to save, stabilize, and invest in what comes next.
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