By The Weekly Vision Editorial Desk
President William Ruto has signed the Sovereign Wealth Fund Act into law, establishing the Urithi Fund, a landmark initiative designed to safeguard Kenya’s future resource wealth for generations to come. Under the new law, 30 per cent of revenues from oil, minerals, and other natural resources will be directed into the fund.
The Urithi Fund (Swahili for “heritage”) features two main pillars, a Stabilisation Window to cushion the economy against shocks such as commodity price fluctuations, and a Strategic Investment Window to finance long-term infrastructure and job-creating projects. The principal amount is protected from spending, with only returns available for use
The framework draws partial inspiration from Norway’s highly successful sovereign wealth fund, which transformed North Sea oil revenues into one of the world’s largest public investment vehicles. Kenyan officials have hailed the move as a decisive step towards “first-world status” by ensuring that resource windfalls benefit future generations rather than being consumed in annual budgets or lost to mismanagement.
Speaking during the signing ceremony, President Ruto emphasised that the fund would promote prudent financial management and shield the economy from volatility. “This is about building lasting prosperity,” he stated.
While many welcome the initiative, economists and governance experts have urged caution. They stress that the fund’s success will depend heavily on strong oversight, transparency, and independence from political interference.“On paper, this is excellent policy,” said one economic analyst. “But Kenya has had good laws before. The real challenge is implementation, avoiding the leakage and elite capture that have plagued previous public funds.”
Critics also point to Kenya’s existing debt burden and weak public finance management, warning that without robust safeguards, the Urithi Fund could become just another vehicle for patronage. If managed effectively, the fund could create a buffer against economic shocks, finance critical infrastructure in counties, support youth employment and industrialization and reduce pressure on ordinary taxpayers.
For resource-rich counties such as Turkana and those with potential mineral deposits, the law offers hope of more direct benefits from extraction activities.The signing of the Urithi Fund Act comes at a time when Kenya is also recording strong foreign investment inflows, raising expectations that the country may be entering a new phase of economic management.
