Ruto Says John Mbadi Will Feature in His Book for Leading Key Reforms

President William Ruto has signed the Sovereign Wealth Bill into law, formally establishing Kenya's Sovereign Wealth Fund. 

The fund will invest surplus public revenues to support future savings, economic stability and strategic infrastructure projects. The law was signed at State House in Nairobi during a ceremony attended by government and opposition leaders.

President Ruto praised National Treasury Cabinet Secretary John Mbadi for leading the reforms and thanked Parliament for passing the legislation after extensive debate. He said the Finance Committee and the Leader of the Majority had worked late into the night to secure agreement on the Bill while he was abroad.

Ruto said the broad support for the legislation reflected a shared commitment to protecting Kenya's economy despite political differences. He added that the Treasury had played a central role in advancing the government's fiscal reform agenda under Mbadi's leadership.

The Sovereign Wealth Fund will manage surplus revenues through three separate accounts. One will save wealth for future generations, another will help stabilise the economy during periods of financial uncertainty, and the third will finance major infrastructure projects. 

The government says this structure will strengthen economic resilience while ensuring public resources are invested responsibly. Economic analysts say the framework could help Kenya manage national wealth more effectively and reduce the risk of financial instability. 

They also note that the fund could provide protection against external economic shocks and changing global market conditions. The legislation also received support from opposition leaders. Siaya Senator and ODM leader Oburu Odinga, who attended the signing ceremony, urged President Ruto to take firm decisions when implementing reforms that may face political resistance. 

He said difficult choices are sometimes necessary to secure the country's long-term economic interests. Oburu said he first learned about sovereign wealth funds while serving as Assistant Minister for Finance and described them as an important tool for protecting countries from economic uncertainty. 

He said the new fund could also provide domestic financing for priority development projects. He added that the legislation has the potential to become one of Kenya's most significant economic reforms by promoting transparent and sustainable management of public resources.

The new law includes governance measures intended to strengthen accountability and oversight of the fund. The government says these safeguards will help prevent misuse of public money and build confidence in the management of the fund.