The United Alternative Government Issue a Statement On The National Infrastructure Fund Bill
The United Alternative Government, has heightened its resistance to the National Infrastructure Fund Bill, 2026, citing a dangerous shift toward "fiscal opacity."
Their central argument is that the bill creates a Sh5 trillion ($38 billion) "shadow budget" that bypasses the constitutional safeguards of the Consolidated Fund.
Below are relevant backlinks and legal context related to the current controversy:
Key Legal and Political Backlinks
The National Infrastructure Fund Bill, 2026: The official draft legislation currently before the National Assembly of Kenya. It outlines the establishment of the fund as a body corporate, its governance by an independent board, and its mandate to "monetize mature public assets" like the Kenya Pipeline Company.
https://x.com/skmusyoka/status/2029485343104217586?s=20
Constitutional Challenge (Milimani High Court): A petition led by Dr. Magare Gikenyi (Petition 530 of 2025) argues that the executive's attempt to register the fund as a Limited Liability Company (LLC) violates Article 206 of the Constitution, which mandates that all national public funds be established by an Act of Parliament, not the Companies Act.
Treasury CS John Mbadi’s Affidavit: In a significant development on March 4, 2026, CS Mbadi admitted to misleading the public regarding the fund's registration status. The opposition claims this contradiction—describing it as an LLC in court while pitching it as a public fund to Parliament—breaches Article 153(4) of the Constitution.
Auditor General’s Warning: Auditor General Nancy Gathungu has flagged structural paradoxes in the bill, noting that while the fund aims to reduce debt, its clauses actually prioritize borrowing. She also warned of a "bypassing" of the Controller of Budget’s mandate to authorize withdrawals.
Comparison of Oversight Models
| Feature | Proposed Infrastructure Fund | Standard Consolidated Fund |
| Governance | Independent Board of Directors | National Treasury & Parliament |
| Withdrawal | Board Approval / Fund Administrator | Controller of Budget Approval |
| Structure | Body Corporate (quasi-private) | Public Accounting Unit |
| Audit Cycle | 4 Months (per Bill) | 3 Months (Public Audit Act) |
Summary of Opposition Demands
The United Alternative Government, led by figures like Kalonzo Musyoka and Rigathi Gachagua, insists that the government should instead focus on:
Stricter Procurement Oversight: To prevent the "execution failures" seen in previous mega-projects.
Infrastructure Bonds: Leveraging existing market-tested instruments rather than new "semi-autonomous" entities.
PPPs: Reforming the Public-Private Partnership framework to attract capital without compromising transparency.
Would you like me to draft a summary of the specific clauses in the Bill that the Auditor General found to be in conflict with the Public Audit Act?
CS Mbadi's testimony on the Sh5 Trillion Fund
This video provides a direct look at the parliamentary and public backlash regarding the fund's transparency and the Sh4 trillion in previously unaccounted-for borrowing.