Report On Consideration Of The Sovereign Wealth Fund Bill (na Bill No. 7 Of 2026)

A report of Finance And National Planning (National Assembly)

Published: June 2026 · 13th

Original PDF — parliament.go.ke

Read the report (OCR extract)

THENATIONALASSEMBLY

THIRTEENTHPARLIAMENT-FIFTHSESSION-2026

DIRECTORATEOFDEPARTMENTALCOMMITTECS

DEPARTMENTALCOMMITTEEONFINANCEANDNATIONAL PLANNING

REPORT ON:

THECONSIDERATIONOFTHESOVEREIGNWEALTH·FUNDBILL (NATIONAL ASSEMBLY BILLNO/7OF 2026)

Published by:

THENATIONALASSEMBLY PAPERSLAID

DATE:

2 4 JUN' 2026

TheDirectorate of Departmental Committees

Clerk's Chambers

Parliament Buildings NAIROBI

TABLED BY:

CLERK-AT THE-TABLE:

JUNE,2026 DAY.

WEDNRSLAY

HoNnANKuRA,M eHAIRFIdANCeGomnITTEG ESTHEn GCNO

| ANNEXURES | | |--------------------------------------------------------------------------|----| | CHAIRPERSOIN'SFOREWORD | | | CHAPTERONE | 6 | | IPREFACE | | | I.IESTABLISHMENTANDMANDATEOFTHECOMMITTEE | | | 1.2COMMITTEEMEMBERSHIP | 8 | | 1.3COMMITTEESECRETARIAT. | | | CHAPTERTVO | 10 | | 2.0OVERVIEWOFTHESOVEREIGNWEALTHFUNDBILL(NATIONAL ASSEMBIYBILLNO.7OF2026) | 10 | | 2.1 Rackground | 10 | | 2.2Suminaryof Legal Provisions | 10 | | CHAPTER'THREE | 24 | | 3.PUBLICPARTICIPATIONANDSTAKEHOLDERENGAGEMENTONTHE BILL | 24 | | 3.ILEGALFRAMEWORKONPUBLICPARTICIPATION | 24 | | 3.2MEMORANDARECEIVEDONTHEBILL | 24 | | 3.2.ITHENATIONALTREASURY | 25 | | 3.2.2THEOFFICEOFCONTROLLEROFBUDGET | 26 | | 3.2.3YOUTHFORSUSTAINABLEDEVELOPMENT(YSD)-MAKUENI CHAPTERCBO | 29 | | 3.2.4CLAUSEBYCLAUSESUBMISSIONS | 29 | | 3.2.5COUNTYSUBMISSIONS | 61 | | CHAPTERFOUR | 66 | | 4.COMMITTEEOBSERVATIONS | 66 | | CHAPTERFIVE | 68 | | 5.COMMITTEERECOMMENDATION | 68 | | CHAPTERSIX Error!Bookmark not defined. | | | 6.SCHEDULEOFPROPOSEDAMENDMENTS Error!Bookmarknotdefined. | |

LISTOFABBREVIATIONSANDACRONYMS

CBK

Central Bank of Kenya

CBO

Community Based Organization

CEO

ChiefExecutive Officer

COB

Controller of Budget

CoB

Controller of Budget

COK

Constitution of Kenya

CRA

CommissiononRevenueAllocation

ESG

Environmental,SocialandGovernance

GAPP

GenerallyAcceptedPrivacyPrinciples

IPF

InstituteofPublicFinance

KISM

Kenya Institute of Supplies Management

LSK

Law Society of Kenya

MemberofParliament

NGCDF

National GovernmentConstituencyDevelopmentFund

NSE

Nairobi Securities Exchange

OAG

OfficeoftheAuditor-General

OCOB

Office of the Controller of Budget

ODM

OrangeDemocraticMovement

PFMACT

PublicFinanceManagementAct

PWDs

PersonswithDisabilities

SWF

Sovereign Wealth Fund

TISA

TheInstituteofSocialAccountability

UDA

UnitedDemocraticAlliance

ANNEXURES

AnnexureI:AdoptionSchedule

Annexure2:Minutesof theCommitteeonitsconsiderationof theBill

Annexure 3:The SovereignWealth Fund Bill (National Assembly Bills No. 7 of 2026)

Annexure 4:Advertisement inviting the public to submit memoranda on the Bill

Annexure 5:Letter fromthe Clerk of the National Assemblyinviting relevant stakeholciers toattend thepublicparticipation forum

Annexure6:MemorandabyStakeholders

CHAIRPERSON'SFOREWORD

This report contains the proceedings of the Departmental Committee on Finance and NationalPlanningonitsconsiderationoftheSovereignWealthFundBill(National Assembly Bills No. 7 of 2026). It was published in the Kenya Gazette Supplement No.25 of 25th February, 2026 and read a First Time on IIth March, 2026. The Bill was thereafter committedtotheCommitteeforconsiderationandtablingofitsreporttotheHouse pursuant toStandingOrder127.

Theprincipal objectof theBill is toprovide a legal frameworkfor the establishment of theSovereignWealthFund to achieve long-term fiscal sustainability and intergenerational wealth-sharing.TheFundisproposedtoachieveseveralpurposes,whichinclude:provide the national government with a buffer from fluctuations in resource revenues or extraordinaryshocks;providefinanceforstrategicinfrastructureinvestmentprioritiesto fosterstrongandinclusivegrowthanddevelopment;andbuildasavingsbaseforfuture generationswhenminerals andpetroleumresourcesareexhausted.

In compliance with Article I 18 (1) (b) of the Constitution and Standing Order 127(3), the Clerk of theNational Assemblyplaced an advertisement in the print media onI9th March, 2026, inviting the public to submit memoranda by way of written statements on the Bill. Inaddition,theClerkoftheNationalAssemblyvideletterRef.No.NADDC/F&NP/065, dated16thApril2026,invitedkeystakeholderstosubmitviewson theBill and toattend a public participation forum on 22ndApril 2026.

The Committee is grateful to the Offices of the Speaker andClerk of the National Assembly for the logistical and technical support accorded to it during its consideration of the Bill. Similarly, I wish to express my appreciation to the Honourable Members of the CommitteeandtheCommitteeSecretariatwhomadeinvaluablecontributionstowards the preparation and production of this report.

On behalf of the Departmental Committee onFinance and National Planningand pursuant to the provisions of Standing Order I99(6), it is my pleasure to report that the Committee hasconsideredtheSovereignWealthFundBill(NationalAssemblyBillsNo.7of2026) andwishtoreporttothisAugustHousewiththerecommendationthattheHouse approves theBillwithamendments.

Hon. FCPA. Kuria Kimani, CBS, M.P.

Chairperson, Departmental Committee on Finance and National Planning

IPREFACE

I.IESTABLISHMENTANDMANDATEOFTHECOMMITTEE

1.The Departmental Committee on Finance and National Planning is one of twenty departmental committees of the National Assembly established under Standing Order 216 whose mandate pursuant to the Standing Order 216 (5) is as follows:
a)To investigate, inquire into, and report on all matters relating to the mandate, management, activities,administration, operations and estimates of the assigned ministriesanddepartments;
b) andtheeffectivenessoftheimplementation;
To,onaquarterlybasis,monitor and report onthe implementationofthe national budget in respect of its mandate;
P To study and review all legislation referred to it;
e To study, assess and analyse the relative success of the ministries and departments as measured by the results obtained as compared with their stated objectives;
f To investigate and inquire into all matters relating to the assigned ministries and departments as they may deem necessary, and as may be referred to them by theHouse;
g)Tovet and reporton all appointmentswhere theConstitution or any lawrequires the National Assembly to approve, except those under Standing Order 204 (Committee on Appointments);
i) Tomakereports andrecommendationsto theHouse as oftenaspossible, includingrecommendationsofproposedlegislation;
h)To examine treaties,agreements and conventions;
i Toconsiderreportsof Commissions andIndependentOffices submitted tothe House pursuant to the provisions of Article 254 of the Constitution;and
k)To examine any questions raised by Members on a matter within its mandate.

2. The Second Schedule to the National Assembly Standing Orders assigns the Committee the mandate to consider matters in relation to public finance, public audit policies, monetary policies, financial institutions, economy, investment policies, competition, banking, insurance, national statistics, population, revenue policies including taxation, national planning and development, digital finance, including digital currency. 3. In executing its mandate, the Committee oversees the following Ministries/Departments:

a)The National Treasury.

CHAPTER ONE

b)StateDepartment for EconomicPlanning.
c)The Commission on Revenue Allocation (CRA)
d)Office of the Controller of Budget.

ReportoftheDepartmentalCommitteeonFinanceandNationalPlanningontheConsideration ofTheSovereignWealthFundBill(NationalAssemblyBillNo.7of2026)

1.2COMMITTEEMEMBERSHIP

1. The Departmental Committee on Finance and National Planningwas constituted by the House on 27th October2022 and comprisesof thefollowingMembers:

Chairperson

Hon. FCPA Kuria Kimani, CBS, MP Molo Constituency UDA Party

Vice-Chairperson

UDA Party Members

Hon. (Amb.) FCPA Langat Benjamin Kipkirui, CBS, MP Ainamoi Constituency

Hon. Peter Kaluma, CBS, MP Homa Bay Town Constituency ODM Party

Hon. Sunkuyia, R. George, MP KajiadoWest Constituency UDA Party

Hon. FCPA Oyula, Joseph H. Maero, MP Butula Constituency ODM Party

Hon. Gathoni Wamuchomba, HSC, MP Githunguri Constituency UDA Party

Hon. Mboni, David Mwalika,MP Kitui Rural Constituency WDM Party

Hon. Sheikh Umul Sheikh,MP

Mandera County UDIM Party

Hon. Okuome Adipo Andrew, MP Karachuonyo Constituency ODM Party

Hon.(Dr.) Shadrack Mwiti, MP South Imenti Constituency Jubilee Party

Hon. Chiforomodo, Munga, MP Lunga Lunga Constituency UDM Party

Hon. (Dr.) Ariko John Namoit, MP Turkana South Constituency ODM Party

Hon. CPA Rutto Julius Kipletting, MP Kesses Constituency UDA Party

Hon. Machele M. Soud, MP Mvita Constituency ODM Party

Hon. Paul Biego, MP Chesumei Constituency UDA Party

ReportoftheDepartmentalCommitteeonFinanceandNationalPlanningontheConsideration ofTheSovereignWealthFundBill(NationalAssemblyBillNo.7of2026)

I.3COMMITTEESECRETARIAT

4.The Committee is facilitated by the following staff:

Ms.Tracy Chebet Principal ClerkAssistantIl /Head ofSecretariat

Ms. Jennifer Ndeto

Mr. Benson Kamande

Deputy Director Legal Services

ClerkAssistantIll

Mr.Salem Lorot

Ms.Winfred Kambua

Senior Legal Counsel

Clerk Assistant II

Mr. George Ndenjeshe

Mr. James Macharia

Fiscal Analyst Il

MediaRelationsOfficer

Mr.Andrew Jumanne Shangarai

Ms. Joyce Wachera

Principal Serjeant-At-Arms

H-lansard Reporter II

Mr.Benson Muthuri

Ms. Nelly W. Ondieki

Serjeant-At-Arms

Research Officer Ill

Mr. Eugene L..uteshi

Mr. Allan Ngugi

Audio Officer II

Administrative OfficerIll

Ms.Penninah Simiren

Mr. Steve Jeremy Kamau

Legal Counsel I

CommitteeIntern

CHAPTERTWO

2.0OVERVIEWOFTHESOVEREIGNWEALTHFUNDBILL(NATIONAL ASSEMBLY BILL NO.7 OF 2026)

2.1Background

5.The Sovereign Wealth Fund Bill (National Assembly Bill No. 7 of 2026) is a National AssemblyBillsponsoredbytheLeaderofMajorityPartyintheNational Assembly.It waspublishedon25thFebruary2026andreadaFirstTimeonI1thMarch,2026.The Bill was committed to the Departmental Committee on Finance and National Planning for its consideration and tabling of its report to the House.
6.The principal object of the Bill is toprovide a legal framework for the establishment of theSovereignWealthFund toachievelong-termfiscalsustainability and which include:provide the national government with a buffer from fluctuations in resourcerevenuesorextraordinary /shocks;providefinanceforstrategic infrastructure investment priorities to foster strong and inclusive growth and development; and build a savings base for future generations when minerals and petroleumresourcesareexhausted.

2.2 Summary of Legal Provisions

OverviewoftheBill

7. The Bill contains 8 parts and 6l Clauses majorly providing for provisions on the Infrastructure Investment Component and the Future Cienerations Component. It also provides for prohibited and qualifying investment instruments by investment fund managers and reporting and audit of the Fund, and preservation of reserves of the Fund. 8. The Bill seeks to establish the Sovereign Wealth Fund ("the Fund") to achieve longterm fiscal sustainability and intergenerational wealth-sharing. 9. Clause 5 of the Bill provides that the Fund is proposed to achieve several purposes, theseinclude:

i) providingthenationalgovernmentwithabufferfromfluctuationsinresource revenuesorextraordinaryshocks;
i) providing finance for strategic infrastructure investment priorities to foster strongandinclusivegrowthanddevelopment;and

resourcesareexhausted.

SourcesoffundsoftheFund

10.Clause6oftheBillprovidesthattheFundshallconsistofthefollowingresources revenues-
i) theGovernment'sshareofprofitderivedfromupstreampetroleumoperations excluding the share of profit payable under section 58(2) and (3) of the Petroleum Act;
i) allpetroleumroyaltiespayabletotheGovernment;
ii) all mining royalties payable to the national government under section I83(5)(a) of the Mining Act;
iv) all bonus payments on grants or when production levels or prices of petroleum operationsreacha definedlevel;
all payments on grants or assignment of mining rights;
vi) all earnings from direct or indirect participation interest of the Government in mineralsandpetroleumoperations;
vii) all proceeds from divestment frompetroleum and mining interests held by the Government; and
vii) any other revenue from minerals, petroleum and monies from other sources as may be determined by the Cabinet Secretary and approved by Cabinet.
Il. Clause 7 of the Bill provides that there shall be an account opened and operated at the Central Bank of Kenya for the Fund to be known as the Holding Account,which shallbe used for receiving,holding,and disbursing all the proceeds to theFund.

12. Clause 8 of the Bill provides that any deposits into the Holding Account shall be transferred into the respective components of the Fund in proportions specified by the Cabinet Secretary in consultation with the Board at the beginning of each financial year considering——

i) the need to maintainmacro-economic stability;
i) the competitivenessof thenon-resourcesector;
i) investments in strategic priority projects; and
iv) the needl to provide at least ten per cent savings for future generations.

Components of the Fund

13. Clauses 9-17 of the Bill provide that the Fund shall have three differentcomponents namely;

i) The Stabilisation component;

3. i TheStrategicInfrastructureInvestmentcomponent;and

i) TheFutureGenerationscomponent.

| The Stabilisation component | The Strategic Infrastructure Investment component | The Future Generations component | |-----------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Objective | | | | To provide the national government with resources for management of extraordinary shocks whichmayaffectmacro- economic stability. | To provide funding for strategic infrastructure investmentprioritiesthatare aligned to the national development plan. The strategic infrastructure investment priorities mayincludeinvestments in agriculture, transport, housing, energy, water, education and health projects and may leverage private sector financesincommerciaily viable projects. | To build a savings base for future generations by— v) establishing an endowment to support tStrategic Infrastructure Investment for future generations, whentherevenues from minerals and petroleum are depleted; generating an alternative stream of income to support expenditure on capital projects becauseofrevenue downturn caused by depletion of. minerals and petroleum revenues; and vii) distributing wealth acrossgenerations. | | Sources of Furols | | | | The Stabilisation Component | The Strategic Infrastructure Investment Componert | Future Generations Component | | Transfers received from the Holding Account; and | Transfersreceivedfromthe Holding Account; and | Transfersreceivedfromthe Holding Account; | | Fifty per cent of the investment income earned from the Stabilisation Component. | Fifty per cent of investment incomeearnedontheStrategic Infrastructure Investment Component. | Investmentincomeearnedon the Future Generations Component; |

| Fifty per cent of the investment incomeearnedonthe Stabilisation Component,and | |-------------------------------------------------------------------------------------------------| | Fiftypercentoftheinvestment income earned on the Strategic Infrastructure Investment Component. |

Depletion of Mineral and PetroleumResources

I4. Clause 18 of the Bill provides that where there is a significant depletion of large and medium-sizedmineraloperations andpetroleumresources—
i) the cash balances held in the respective components of the Fund shall be consolidatedintoonesingleaccountoftheFundtobeheldatCBKafterwhich the different components of theFund shallcease to exist; and
all the net assetsof the three components shall become the assets of theFund.

15. After the minerals and petroleum reserves are depleted, any withdrawal from the Fund shall bebasedon cumulativeprincipal deposits and interests earned up to thie date of shall be withdrawn.This withdrawal shall be for the purposes of financing strategic infrastructure investment priorities as approved by the National Assembly in the BudgetEstimates.

Public Finance Management Principles

16. Clause I9 of the Bill provides that the Public Finance Management Act, Cap. 412A shall apply to the administration and management of the Fund. 2. 17.Clause20 of the Bill provides that anywithdrawal from theStabilisation Component andtheStrategicInfrastructureComponentshallbemadein accordancewiththefiscal Act and procedures prescribed in the Act.

ChiefExecutiveOfficer

I8.Clause 2l of the Billprovides that theChief Executive Officer shallbe the administratoroftheFundwhoshall—
prepare quarterly financial statements in respect of the Fund in accordance with thePublicFinanceManagementAct;and

ii) prepare and submit to the Auditor-General for audit the annual financial statementsoftheFundinaccordancewiththePublicFinanceManagementAct andPublicAuditAct.
19.Clause22of theBillprovidesthat theChief ExecutiveOfficershallsubmitto the Cabinet Secretary for inclusion in the annual Budget Policy Statement
i) the actual and projected resource revenues and withdrawals from the Fund over themedium-term;and
i) ceilings on annual withdrawals from the Stabilisation Component and Strategic InfrastructureInvestmentComponent.
20.Clause 23 of the Bill provides that the Holding Account and the accounts of the applicable to the bank accounts of national government entities under section 28(l) of thePublicFinanceManagementAct.

Manageme:nt of the Fund

21.Clause 25 of the Bill provides that the management of the Fund shall vest in the SovereignWealth Fund Board with headquarters in Nairobi.

22. Clause 27 cf the Bill provides for thepowers of the Board which include;

| Adminiratom and ManagokenofFund | Performance Contract | Performance Evalnation | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Provideoverall guidance and oversight of the administration and management of the Fund; With the approval of the Cabinet Secretary, determine the management structure and operational guidelines of the Fund; | Keep under constant review the performance of theChiefExecutiveOfficer in discharging the responsibilities of that office; | Set performance benchmarksforreturns and risks; Perform financial management: and reporting functions including among others- (i) monitoring the performance the investments, how the investment policy has been implemented, including which qualifying |

ReportoftheDepartmentalCommitteeonFinanceandNationalPlanningontheConsideration ofTheSovereignWealthFundBill1(NationalAssemblyBillNo.7of2O26)

| Invest the proceeds of the Fund in accordance with this Act; Develop the investment policies of the Fund, considering monetary and fiscal policies of the Government, for approval by the Cabinet; Approve the budget for the management, administration and agency fees related to the Fund, which shall be included in the budget estimates of the national government; With the approval of the Cabinet Secretary, open orclosebank accounts of the | instruments in which the components of the Fund are invested; and (i) preparing quarterly reports on the receipts into and withdrawals fromtheFund andsubmittothe Cabinet Secretary by fifteenthday of the month following the end ofthequarteras required under thisActandthe Public Finance Management Act; | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ReportoftheDepartmentalCommitteeonFinanceandNationalPlanningontheConsideration ofTheSovereignWealthFundBill(NationalAssemblyBillNo.7of2026)

iv) management;
or higher magnitudes;
vi) canprovide such information and reports atsuch times and in such a manner as theBoardmaydetermine;
vii) licensedbytherelevantauthority;and
vili) meets any other relevant conditions as may be prescribed by the Board.

37. Clause 50 read together with the Third Schedule provides for the role of an investment fund manager which shall include

i) implementing the investment policies, strategies and guiclelines of the Board in respecttotheinvestmentoffunds;
i) managing assets and other resourcesof the Fund in accorclance with the Act, and theprudent investor standardof aninvestmentfundrmanager engaged in the asset management profession;
ii) investingassetsandotherresourcesoftheFundinaccordancewiththeAct, and the operational and investment guidelines developed under the Act;
iv) providers, including advisors, to carry out competently the mandate specified in the instrument of delegation in accordance with the relevant written law;
disbursements and other transactionsrelating to themanagement of theFund in accordance with internationally accepted accounting standards;
vi) Fund;
vii) submitting an annual report of the investment management to the Board not later thantwomonths after the endof the financial year;and
vii) a po aa lrs () pue (a) sded u o paa soa ar certificatesignecbytheinternal auditorsoftheinvestmentfundmanagerand a certified investrment report on the performance of the Fund.

Reporting and audit of the Fund

38.Clause51and52of theBillprovidesthattheBoardshall,within3monthsafter the end of each financial year, prepare and submit consolidated financial statements of the Fund foreachcomponentof theFund totheAuditorGeneralwhoshallaudit in accordancewithPublicAuditAct.
39.Clause53of theBill provides thattheBoardshall prepare an annual reportrelatingto eachcomponentoftheFundandshall,withinsixmonthsaftertheendofeachfinancial year,submit the report to the Cabinet Secretary,who shall then submit to the National Assemblywithin fourteen days after receipt.

Misappropriation of funds

40. Clause 54 of the Bill provides for the penalty of misappropriation of funds with the 2. i)paying twice the amount misappropriated; and 3. i a fine of notless than ten million shillings or imprisonment for a term of not lessthanfiveyearsortoboth. 41. Clause 55 of the Bill provides for general penalty where no specific penalty has not been provided toinclude imprisonment for a term not less than two years or to a fine ofnotlessthanfivemillionshillingsortoboth.

Preservationof thereserves of the Fund

42.Clause56of the Billprovides that the monies standing to the credit of theFund,at least three months before a generalelection,shall be certified by the Board and a reportsubmittedtotheNationalTreasuryfortransmissiontotheAuditor-General andtheNationalAssembly.
43.Further,clause 56 of the Bill provides that the monies in the Fund shall not be withdrawn or transferred from the Fund during theperiod commencing three months beforeageneralelection.Onemonthbeforeageneralelection,theBoardshall prepare and submit to the National Treasury for transmission to the Auditor-General and the National Assembly a report on the Fund.
44.Clause 57 of the Bill provides that the provisions of the State Corporations Act, Cap. 446 shall not apply to the Sovereign Wealth Fund.
45.Clause58of theBillprovides that theActshallprevail inallmattersrelatingto the allocation, withdrawal, transfer, investment and management of all revenues from
46.Clause 60 of the Billprovides that the Cabinet Secretary may appoint aninterim manager and staff to administer the Fund pending the constitution of the Board. The lack of a timeline creates an indefinite period before which a Board is constituted. It is importanttoseta timelinetowhichtheBoardmustbeconstituted.Additionally,this provisionposesariskofinstitutionalinstabilitywherethestaffwillbereplaced especially because the Cabinet Secretary is the only person providing interim oversight beforeconstitution of aBoard.
47.Clause 6l read together with the Fourth Schedule to the Bill provides for consequential amendments to the Petroleum Act, Cap. 308, the Mining Act, Cap. 306 and the Kenya Revenue Authority Act, Cap. 469

CHAPTERTHREE

3.PUBLICPARTICIPATIONANDSTAKEHOLDERENGAGEMENTON THE BILL

3.ILEGALFRAMEWORKONPUBLICPARTICIPATION

48. Article Il8 (l)(b) of the Constitution provides that:

"Parliament shall facilitate public participation and involvement in the legislative and other businessofParliamentanditsCommittees."

49. The National Assembly Standing Order I27 (3) and (3A) stipulates that: 2. (3)TheDepartmentalCommitteetowhichaBill iscommittedshallfacilitatepublic 3. (a)invitingsubmissionofmemoranda; 4. (b) holding public hearings; 5. (c)consultingrelevantstakeholders inasector;and 6. (d) consulting experts on technical subjects. 7. (3A) )TheDepartmentalCommitteeshalltakeintoaccounttheviewsand recommendations of the publicunder paragraph(3) in its report to the House."

3.2MEMORANDARECEIVEDONTHEBILL

50.Pursuant to the aforementioned provisions of law,the Clerk of the National Assembly placed an advertisement in theprint media on 19th March,2026 inviting thepublic to submitmemorandaontheBill.Further,theClerkoftheNationalAssemblyvideletter Ref. No. NA/DDC/F&NP/ 065 dated 16th April 2.026 invited key stakeholders to submit views on the Bill and attend a public participation forum on 22nd April, 2026.

51. The Committee received memoranda from the following stakeholders.

i) The Office of the Controller of Budget.
i) The National Treasury
ii) CommissiononRevenueAllocation.
iv) Youth For Sustainable Development (YSD) -Makueni Chapter CBO.
InstituteofPublicFinance.
vi) The Institute for Social Accountability (TiSA)
vii) Bowmans LLP.
vii Ministry of Mining, Blue Economy and Maritime Affairs.
ix) TheOfficeoftheAuditorGeneral.
x) Law Society of Kenya.
xi) Kenya Institute of Supplies Management.
xii) Salaries and Remuneration Commission.

ReportoftheDepartmentalCommitteeonFinanceandNationalPlanningontheConsideration ofTheSovereignWealthFundBill(NationalAssemblyBillNo.7of2O26)

3.2.ITHENATIONALTREASURY

The National Treasury appeared before the Committee and submitted as follows;

52. The National Treasury supported the establishment of a Sovereign Wealth Fund (SWF), so that Kenya can operationalize the constitutional principle of intergenerational equity as provided under Article 20l while ensuring that the benefits derived from natural resources are equitably shared between present and future generations. 2. 53.The Ministryrecommendedstructuring theFund into three components,namely the Stabilisation Fund, the Strategic Infrastructure Investment Fund, and the future Generations Fund,so that the Fundcan simultaneouslyaddress short-term macroeconomicshocks,financenationaldevelopmentpriorities,andsecurelong-term Stabilisation component in cushioning the national economy against extraordinary shocks, since such a mechanism enhances macroeconomic stability and fiscal resilience duringperiods of revenuevolatility. 3. 54.The National Treasury recommended establishing a Strategic Infrastructure energy, housing, water, education and health, so that the Fund can support inclusive projects.In addition, the Ministry justified the creation of a Future Generations minerals are exhaustible and therefore need to be transformed into long-term financial assets to support future national development and ensure equitable wealth distribution acrossgenerations. 55. Under funding, the Ministry identified extractive sector revenues, including petroleum profits, royalties, mining revenues, bonuses, and proceeds from divestment, as the primary sourcesof theFund,so that non-renewable resourcewealth canbeconverted into sustainable financial capital. Further,the Treasury allowed for the inclusion of additional funcling from investment income and otherrevenues as may be approved by the Cabinet, in order to provide flexibility in financing and enhance the growth of the Fund. 5. 56.Ongovernance,theNational Treasuryrecommended the establishmentofaSovereign Wealth Fund Board to provide oversight and strategic direction, together with a Chief Executive Officer to manage day-to-day operations, so that the Fund operates under astructuredandaccountableinstitutionalframework.TheTreasury alsorequired that because professional fund management is necessary to ensure efficiency, compliance, and optimal returns.

s d instruments such as speculative derivatives, private equity, and unlisted real estate, so that public funds are safeguarded against excessive exposure to financial risk. The Ministry further, provided for financial reporting in accordance with standards set by the Accounting Standards Board and oversight by the Auditor-General, so that

Committee Observation

The Committee agreed with the National Treasury on the need to provided under Article 20l by establishing the Sovereign Wealth Fund.

3.2.2THEOFFICEOFCONTROLLEROFBUDGET

Clause2-Part

58.The Controller of Budget proposed amending the interpretation clause to expressly classify the Fund as a public fund under Article 207and expressly acknowledge the CoB's oversight jurisdiction under Article 228(4) of the Constitution. The interpretation clause does not classify theFund as a public fund underArticle 207 of the Constitution,nor does it acknowledge the CoB's jurisdiction under Article 228(4). This creates a foundational accountability gap.

Committee Observation

The Committee agreed with the proposal by the Stakeholder in the need toacknowledgetheroleoftheCoBinaccordancewithArticle228ofthe Constitution.

Part Il

59. The Controller of Budget proposed amending the proposal by inserting a provision thatnowithdrawalshallbemadefromtheFundwithoutthepriorwritten authorisation of the Controller of Budget, all revenues deposited into theFund must and expresslyprohibit theFund from operatingindependently of thenational budget framework.The clause is silent on the Fund's relationship with the Consolidated Fund and the CoB's authorisation powers under Article 228(4). There is a real risk that the Fund will operate as a parallel financial architecture outside the national budget framework,which is constitutionallyimpermissible.

CommitteeObservation

The Committee agreedwith theproposal by theStakeholder in theneed for the Bill to acknowledge the role of the CoB in accordance with Article 228(4)oftheConstitution

Part III - Public Finance Management Principles

60. The Controller of Budget proposed amending the provision to require that all revenuesmustfirstbepaidintotheConsolidatedFundandtransferredtotheSWF exclusion fromthe Consolidated Fundrequirement must be expressly and constitutionally justified in the Bill. The clause does not specify whether revenues flow through the Consolidated Fund before being credited to the SWF.

CommitteeObservation

The Committee observed that the main purpose of establishing the SWF istoensurethattheNationalGovernment'sshareofprofitderived from petroleunandmineraloperations are deposited intotheSVFandnot ConsolidatedFund forthe saidpurposesstated in theBill.

PartIV-ManagementoftheFund

61. The Controller of Budget proposed amending the proposal to designate a nonvoting CoB observer at all Board meetings, to require the Board to account to Parliament through the CoB's budget implementation reports under Article 228(6) and all Board appointments must be subject to a competitive, transparent process with Parliamentary approval. There is no provision for independent oversight representationattheBoardlevel.TheBoardisnotexpresslyaccountableto lacks adlequate safeguards against executive capture.

ComnnitteeObservation

The Committee acknowledged the proposal by CoB but was of the view that requiring the Bill be subjected to PFM Act was sufficient in reference to reporting to CoB.

PartV-InvestmentoftheFund

62.The Controller of Budgetproposed amending theprovision toinclude that the every three years, the CoB must have access to all investment reports, performance audits, and quarterly returns and establish an independent Investment Advisory Committee to review mandate compliance and report toParliament.The mandate grants broad discretion to the Board and the Cabinet Secretary. Mineral and

petroleum revenues are finite and non-renewable-poor investment decisions are irreversible.Nomeasurablebenchmarksorexternalreviewmechanismisprescribed.

Committee Observation

The Committee agreed with the CoB on the proposal of requiring additional oversightfronntheNational Assembly.

WithdrawalsfromtheFund

63. The Controller of Budget proposed amending the provision to provide that no withdrawal shall be made except under prior Parliamentary appropriation, consistent withArticles206and228(4);everywithdrawal mustbeexpressly authorised inwriting by the Controller of Budget before it is effected. A statutory withdrawal rule must cap sustainability.Withdrawalsinexcessoftheprescribedlimitshallbenull andvoid,with personal civil and criminal liability attaching to the authorising officer. As currently drafted,the clause risksvestingwithdrawal authorityin theCabinetSecretarywithout adequate constitutional checks. This is the most significant accountability gap in the entire Bill.

Committee Observation

The Committee agreed with the CoB on the proposal of requiring appropriation and withdrawal approval by the CoB.

Part Vll -Report on and Audit of the Fund

64. The Controller of Budget proposed amending the provision to include that the Board must submit quarterly financial and investment performance statements to the CoBwithin 45 days of the close of each quarter,annual accounts must be audited by theAuditor-GeneralunderArticle229and thePublicAuditAct,2015,annualreports must be tabled in bothHouses of Parliamentwithin three months of the financial year endandtheFund'sfinancialdatamustbeincorporatedintotheCoB'sfourmonthly clause does not integrate the Fund into the CoB's budget implementation reporting frameworkunderArticle228(6)orlinktheaudittotheAuditor-General'smandate under Article229.

Committee Observation

The Committee agreed with the CoB's proposal in requiring annual accounts be prepared within 3 months after the end of the financial year and submitted to the CoB and Auditor General for forwarding of a copy totheNational Treasuryinaccordancewith theprovisionsof thePublic Finance Management Act, Cap. 412A.

PartVlll-MiscellaneousProvisions

65. The Controller of Budget proposed amending the proposal to insert an express savingsclausepreservingthefull applicationofthePFMAct,thePublicAuditAct2015, and Article 228 of the Constitution to all Fund operations. Regulations made under this Act must be subject to affirmative Parliamentary resolution.Commencement of all substantive provisions must be by a fixed date set in the Act, not by Ministerial proclamation. Savings provisions do not expressly preserve the application of the PFM Act, Public Audit Act, and the CoB's Article 228 powers. Regulations are subject only to negative resolution, which is insufficient Parliamentary oversight for a Fund of this magnitude.

Committee Observation

The Committee observed that the provisions in the Bill were sufficient in reference to the Public Finance Management Act and the Public Audit Act. Further, the Statutory Instruments Act, Cap. 2A regulates on delegated legislation which require Parliamentary oversight.

3.2.3YOUTH FORSUSTAINABLEDEVELOPMENT(YSD)-MAKUENI CHAPTERCBO

66.TheYSDopposedtheBill initsentiretywhileanchoring thisonthreecoreconcerns:
67.Structural duplication of existing public financial institutions; Weak fiscal justification under current macroeconomic conditions; and Governance and accountability risks within Kenya's institutional environment.

68. The stakeholder submitted that the sovereign wealth fund requires consistent fiscal surplus generation or resource windfalls. Kenya currently operates in a deficit-financed fiscal regime characterized by debt accumulation rather than surplus accumulation.

CommitteeObservation

The Comrnittee acknowledged the stakeholder's proposal however; it was future generations especially when minerals and petroleum resources are exhausted.

3.2.4CLAUSEBYCLAUSESUBMISSIONS

Clause2

Commission onRevenue Allocation(CRA)

69. CRA proposed amending the definition of the word "resource revenue"by inserting the word "national" between the phrase "means the"and the word "Government". They stated that thiswill specify therelevant level of Government. 70. The Institute of Public Finance (IPF) proposed amending the provision to include the term"public"in the definition of the Fund and expressly provide that the Fund is held in trust for the people of Kenya.The definition of the Fund does not expressly recognize its public character despite the Fund being established from public revenues derived from natural resources, thereby creating uncertainty regarding ownership and public accountability. 3. 71.Additionally,IPF proposed amending the provision to define the Holding Account as adesignatedbankaccountforthereceiptanddisbursementofmineralandpetroleum revenues prior to their transfer to the Fund components. The definition of Holding ambiguity regarding the management and utilization of monies held therein.

Committee Observation

T'he Committee acknowledged the proposal by IPF however, it was of the view that the Fund being subjected under the Public Finance Management Act: confines it to public funds. The Committee also observed that the provision on Holding Account was clear in reference to its purpose.

Clause3

72. IPF proposed amending the provision to include environmental sustainability and the principles despite the Fund being financed from revenues generated through the exploitation of natural resources whose utilization has implications for present and futuregenerations. 2. 73.Additionally,IPFproposed amendingtheprovisiontoexpresslyincludetransparency, accountability, integrity, and prudent use of public resources among the guiding principles of the Fund. The provision does not expressly recognize established public financial management principles, thereby weakening governance safeguards and public confidenceintheadministrationoftheFund.

CommitteeObservation

The Committee acknowledged the proposal by IPF however, it noted that theBillwasforpurposesofinvestmentofthefundsintheSWFandthat there exist sufficient laws providing for environmental sustainability.

Further,the Committee observed that the Public Finance Management Act already provides for the principles proposed by IPF and further, the Act shall apply to the Bill.

Clause 3(2)

74. The Institute for Social Accountability (TisA) proposed amending the Clause 3(2)by inserting thefollowingparagraph— 2. "(g)theprinciplesof equitablesharing ofnationalresourcesunder Article203of theConstitution,including theneedtotakeintoaccountnationalinterestandto balance the interests ofpresent andfuturegenerations." 3. 75.TiSA arguedthatArticle 203of theConstitutionis directlyrelevant to the the guidingprinciples of the Act to ensure consideration of national interest,equitable resource sharing and intergenerational equity.

Committee Observation

The Committee acknowledged the proposal by TisA but was of the view thattheprovisionsofclause3oftheBillweresufficient tocater for the principles under Article 203.

Clause 4

77.IPF proposed amending the provision to vest ownership of the Fund in the Government of Kenya on behalf of the people of Kenya rather than in the National Treasury. The provision vests ownership in the National Treasury, thereby creating a perception of executive control and undermining the distinction between ownership, management,andoversightfunctions.

CommitteeObservation

The Committee acknowledged the proposal by IPF. However, it was of the view that the Fund, being subject to the Public Finance Management Act, confines it topublicfunds.

Clause 5(2)

78. TisA proposed amending the provision relating to the objects of the Fund to provide that——

"The principal object of the Fund shall be to promote intergenerational equity through the long-term saving and investment of revenues derived from exhaustible naturalresources,andrevenue surplus."

76.

79. They argued that the principal purpose of a sovereign wealth fund should be long-term savings and intergenerational equity, while stabilisation should be secondary and infrastructure financing should not constitute a core component of the Fund.

CommitteeObservation

The Committee acknowledged the proposal by the TisA however it noted that the bill establishes the Fund around three co-equal components; Stabilisation, Strategic Infrastructure Investment, and Future Generations and elevating savings/intergenerational equity above the others would conflict with the core purpose of the Bill.

80. Additionally, TisA proposed deleting the provision identifying strategic infrastructure financing as a core function of the SovereignWealthFund because infrastructure financing is already catered for through dedicated public investment mechanisms and retaining the provision would create duplication,fragmented accountability and institutional inefficiencies.

CommitteeObservation

The Committee acknowledged the proposal by the TisA, however the CommitteeobservedthattheFund'sStrategicInfrastructureInvestment Component is distinctas it capitalises onrevenue from exhaustible natural resourceandwill operate under a dedicated,ring-fencedgovernance and accountabilityframeworkwithin theFund,rather than throughthegeneral budget process.

Clause 6

81. CRA proposed amending the clause by adding the word "national" before the word

CommitteeObservation

The Committee agreed with the proposal by CRA.

82.Bowmansproposed that Clause 6 be amended to:

a)Make clear that the Bill does not impose any new tax, fee, royalty or levy on sector participants, but only reallocates the destination of existing payments; and
b)F Prescribeclearcollection,remittance,timingandreportingrules.
Specify the proportion or formula for allocatingresource revenues to the Fund, subject
P )Includeprovisionsthatprotecttheconstitutionalrevenuesharingentitlementsof CountyGovernmentsandlocalcommunitiesundertheMiningActandthePetroleum Act

CommitteeObservation

The Committee acknowledged the proposal by Bowmans and noted that theclausedidnotinterferewith thecurrentrevenuesharingallocation to County Governments and local communities.Further, the Committee agreed toadd the term'national'forclaritythattheresourcerevenue being targeted under the Bill was the national government's.

Clause6(1)(h)

83.Bowmans proposed amending the Bill to limit the discretionary allocation under They submitted that the provision in the Bill is very broad and lacks sufficient process.

84. According to the stakeholder, this was particularly concerning in light of Clause 58 of the Bill, which provides that the Act shall prevail over other legislation in respect of the allocation, withdrawal, transfer, investment and management of all revenues from mining and petroleum operations.This could effectively overrideParliament's budgetary authority.

CommitteeObservation

The Committee acknowledged the proposal by Bowmans' however, it noted that the Bill provides that the Public Finance Management Act applies to the management of the Fund.

85.Additionally, Bowmans proposed amending Clause 6 to include provisions that protect the constitutional revenue sharing entitlements of County Governments and localcommunitiesundertheMiningActandthePetroleumAct

CommitteeObservation

The Committee acknowledged the proposal by Bowmans and noted that theclausedidnotinterferewith thecurrentrevenue sharingallocation to County Governments and local communities.

Clause6(b)

86. The Ministry of Mining, Blue Economy and Maritime Affairs proposed amending the provision to include allroyalties payable under theMining Act as revenues of the SovereignWealthFund and toprovide for theirremittancein accordance with the proposed amending the provisions to Section I86 of the Mining

The Committee acknowledged the proposal by Auditor General and was of the view that the Public Finance Management Act applied to the Act and as such the Cs is accountable to the sound management of the Fund.

Clause8andClause15

93. TisA proposed amending the provisions relating to allocation of transfers from the HoldingAccount and theFuture Generations Component by establishing theFuture allocation of fifty per cent of transfers to the component and imposing stricter result in underfunding of the savings component and undermine intergenerational equity objectives.

CommitteeObservation

allocation of each component, the Committee recommended 50% to the Future GenerationsConnponent.

Clause9

94. Office of the Auditor-General proposed amending to require the development of regulationsthatprescribeaclearformulaandmeasurablethresholdsfordetermining what constitutes an "extraordinary shock" for purposes of accessing the Fund. The provision defines extraordinary shocks as eventsbeyond the control oftheNational Governmentbut does not establish objective criteria or thresholds for determining significant negative impact. This introduces subjectivity and creates a risk of inconsistent application and discretionary access to theFund.

CommitteeObservation

The Committee acknowledged the proposal of the Auditor General and noted that extraordinary shock should be the one that affects macroeconomic stability.

Clause Il,Clause 14and Clause 17(2)

95. Office of the Auditor-General proposed amending the proposal to require that all withdrawalsfromtheFundbeauthorizedbytheControllerofBudgetuponsubmission of Board resolutions, and that such approval together with written instructions of the Board be sufficient authority for the Central Bank of Kenya to effect transfers. The provisions do not recognize the role of the Controller of Budget as required under the Constitution. They introduce additional approval by the Cabinet without clarity. This creates duplication, legal inconsistency, and ambiguity in the withdrawal process.

CommitteeObservation

The Committee agreed with the proposal by the Auditor General.

Clause Il(3)

96. TisA proposed amending the provision governing withdrawals from the Stabilisation Component by requiring prior approval of the National Assembly before any withdrawal is effected, except in declared national emergencies where postparliamentary approval afterwithdrawal througha supplementarybudget does not provide effective oversight.

CommitteeObservation

Public Finance Management Act will apply in the withdrawals of the funds.

Clause I1(7)

97.Office of the Auditor-General proposed amending the provision to remove or decisionsbeguidedbyclearregulationsinformedbyanindependentcommittee.The provision diverts excess funds from the Stabilisation Component to public debt servicing once a prescribed threshold is reached. This duplicates the role of the Sinking Fund under the Public Finance Management Act. It departs from the core objective of the Fund as a buffer against revenue shocks and a savings mechanism for future generations.
noted that there is need to clarify what aspect of the public debt is being servicedwhetherinterestorprincipalorbothinterestandprincipal.
the provision to approval by the Controller of Budget. This will enhance checks and balances and alignwithArticle228 of the Constitution.

CommitteeObservation

The Committee agreed with the proposal of the Auditor General and the CRAandproposed thatthefundshouldbeused forpurposes investments and not public debt servicing.

Clause12

I00.TheOfficeof theAuditor-Generalsubmitted that there isneed toclarify the nature of the Strategic Infrastructure Investment Component by either redefining it as

ReportoftheDepartmentalCommitteeonFinanceandNationalPlanningontheConsideration ofTheSovereignWealthFundBill(NationalAssemblyBillNo.7of2O26)

acommercialinvestmentvehicleorseparatinginfrastructurefinancingintoadistinct budgetary mechanism. They stated that the provision creates a dual character. It treats the component as both an investment portfolio and a financing mechanism.This blurs thedistinctionbetweeninvestment andexpenditure functions.Itundermines consistency with investment safeguards.

Committee Observation

The Committee acknowledged the proposal by the Auditor General and noted the purposes of the strategic infrastructure investment component

Clause 12(2)

10l. Bowmans proposed amending the proposal to include a framework for private risk allocation, and co-investment structures, and clarify whether co-investors in Fundbackedprojectswillbenefitfrom anytaxincentives.
I02. They submitted that Clause I2(2) refers to leveraging "private sector finances in commercially viable projects" but does not provide any detail on the legal or institutional framework for such participation. The Bill does not address: (a) the procurement process for co-investment opportunities; (b) the risk allocation between the Fund and private co-investors; (c) the return sharing arrangements; or (d) how such co-investments interact with the Public Private Partnerships Act, 2021.
103.Bowmans emphasized that without a clear legal framework, private investors will lack the confidence to participate, which will undermine the leveraging objective of the Component.
104.The Office of the Auditor-General proposed establishing a clear framework for private sector participation, including the nature, timing, and thresholds of investor contributions beyond mandatory fiscal obligations, and to define the Strategic InfrastructureInvestmentComponentanditsdistinctionfromtheNational InfrastructureFund.Theprovisionallowsinclusionofleveragedprivate sector financing without specifying how, when, or to what extent such participation will occur.It does not define the component or differentiate it from the National Infrastructure Fund. This creates ambiguity, overlap of mandates, and uncertainty in governance and accountability.

Committee Observation

The Committee acknowledged the proposal by Bowmans and the Auditor General and noted that clause 59 empowered the Cabinet Secretary to make regulations for the better carrying out of the Bill.

Clause 14

105. CRA proposed adding a requirement subjecting withdrawals under the provision toapprovalbytheControllerofBudget.Thiswillenhancechecks andbalancesand alignwithArticle228oftheConstitution. 2. 106.The Office of the Auditor-General proposed amending to redesign the StrategicInfrastructure Investment Component as a commercial investmentvehicle or torestricttransfers toinvestmentreturnschannelledthroughthebudgetprocess, andtointroduce a transparentformulagoverningwithdrawal.Theprovisionpermits directfinancingofinfrastructurefromtheFundwithoutclearwithdrawalrules.This creates a risk of off-budget spending and discretionary depletion of the Fund. It undermines fiscal stability and long-term savings.

Committee Observation

The Committee agreed with the proposal of CRA on the need for withdrawalsapprovalby theCoB.

Clause I4(1)(a)

107. Bowmans proposed amending the provision by reviewing the withdrawal restrictionsto ensure that theStrategicInfrastructureInvestmentComponentcan operate effectively and flexibly. The stakeholder submitted that Clause I4(l)(a) provides that withdrawals from the Strategic Infrastructure Investment Component can onlybemade on thebasis of thebalance standing to the credit of theStabilisation Component.Bowmans cited that this cross-dependencyb betweenthetwo Components could limit the Government's ability to deploy funds for strategic infrastructurewhenit ismostneeded.

CommitteeObservation

The Committee acknowledged the proposal by Bowmans but was of a differentviewthatthiswastoensureprudentuseofresources.

Clause15

108.CRA proposed that the Future Generations component should only be accessed after a minimum duration of twenty (20) years of savings and in phases. Additionally,

thestakeholdernotedthatsincetheStrategicInfrastructureInvestmentComponent is also being used to set up strategic infrastructure investment, which also benefits the futuregenerations,theFutureGenerationsComponentbetargetedtowardshuman capital development initiatives such as free education, innovation, e-labour, health for future generations as this will have a multiplier effect indriving growth and development by such future generations.Also, they noted that the Controller of Budget must approve any withdrawals from this Component.

Committee Observation

The Committee acknowledged the proposal by CRA and noted that it had proposed a specific allocation of 50% to the Future Generations component.

Clause 17(2)

109.The Law Saciety of Kenya proposed amending the provision by providing a createsa repetitiveapprovalcycle.Thismayresultinadministrativedelays,increased transaction handling, and operational inefficiencies. It also heightens exposure to process risks such as errors, delays in capturing investment opportunities, and potential leakage during frequent transfers. A one-time approval, subject to clear rules on permitted investments, risk limits, timelines, and approved institutions, with enhanceefficiencywhilemaintainingaccountability.

CommitteeObservation

The Committee acknowledged the proposal by LsK but was of the view that the PFM Act applies in reference to the management of the Fund.

Clause18

Il0.TheOfficeof theAuditor-Generalproposedamending theprovisionto requiring approval by the National Assembly for structural changes. The provision reliesonfuturedeterminations andconcentratesdecision-makingwithinthe Executive. This creates uncertainty in fund management and weakens protection of

11. significant depletion of mineral and petroleum resources by requiring the Board to

arrangements,arevisedinvestmentmandate,withdrawal anddistributionrules and reporting obligations applicable to the consolidated fund. TiSA argued that the Bill does notprovide an adequateframework for management of the consolidated fund after resource depletion.

CommitteeObservation

The Committee agreed with the proposal of TIsA and OAG in the need of ensuring there is a depletion strategy plan.

Clause I8 (1)

I12.CRAstatedthatthereisneedtohaveaclear thresholdsetas towhatamounts to a"significant depletion of mineral and petroleum resources" as inferred in this provision.
I13.The Law Society of Kenya noted that the provision is unclear and does not definewhat constitutes such depletion thus the need for an amendment to define "significant depletion"and provide clear, objective criteria and thresholds.This creates room for subjective interpretation and potential misuse. It also does not address how ongoing investments under the components will be treated during consolidation. In addition, the stakeholder observed that the provision is ambiguous. It may lead to prematureorinconsistentconsolidationdecisions.Theclauseshouldbe amended to clarify whether"significant depletion"refers to depletion of extractive resources only or the overall financial position of the components. The threshold for depletion should also be quantified, and guidance provided on the treatment of existing investments.

Committee Observation

The Committee agreed with the proposal of LSK and CRA in providing clarityonwhatentailssignificantdepletion.

Clause 18 (1) (a)

I14.CRA noted that this provision contradicts with Clause 15 (a) and (b) that provide for the object and purpose of the Future Generations Component as to build a savings baseforfuturegenerationswhentherevenuesfrommineralsandpetroleumare depleted. They proposed aligning the two provisions for consistency and to avoid defeatingtheobjectsoftheFutureGenerationsComponent.

CommitteeObservation

The Committee acknowledged and agreed with the proposal by CRA.

Clause 18(3)

I15.The Law Society of Kenya submitted that the current provision does not set limitsonwithdrawals.Thiscreatesariskthatexcessivewithdrawalscould

compromisethesustainabilityoftheFund.Itmay alsoreduceresourcesintended for future generations. The proposal should be amended to introduce a ceiling on annual Fund's total value or projected income. Linking withdrawals to expected returns would ensure that current needs are met without eroding the long-term value of the Fund.

I16. Additionally, the stakeholder proposed that the clause be amended to provide for investmentof theConsolidatedFundunder aclear,rules-basedinvestment framework.The provision does not address how the fund will generate returns or sustain itself over time. This may result in loss of value due to inflation or rapid depletion. A framework defining eligible instruments, risk limits, and reporting requirements would ensure growth, preservation of value, and sustainability for both currentandfuturegenerations.

CommitteeObservation

The Committee acknowledged the proposal by LSK but was of the view that the PFM Act applies in reference to the management of the Fund.

Clauses19,20,21,22,23and2.4

I17.IPF proposed amending the provisions to integrate the Fund into the MediumTerm Fiscal Framework and require publication of fiscal reports demonstrating the relationship between the Fund and the national budget. The provisions do not creating a risk of weakened fiscal discipline, reduced transparency, and inconsistency in macroeconomic planning.

Committee Observation

The Committee acknowledged the proposal by IPF but was of the view that thePFMActappliesinreferencetothemanagementof theFund.

Clause 25(2)

IPF proposed amending the provision to require public disclosure of the Articles of not expresslyrequirepublicationoffoundationalgovernancedocuments,thereby limiting transparency and public oversight of the Fund's governance framework.

Committee Observation

The Committee acknowledged the proposal by IPF and noted that the proposals in the Bill were sufficient.

requiringapprovaloftheChairpersonandChiefExecutiveOfficerbytheNational

Assembly and by providing for a transparent, competitive and merit-based recruitment process.TisA argued that the Fund will manage significant public resources and should thereforebesubjecttoenhancedaccountabilitysafeguards.

CommitteeObservation

The Committee agreed with the proposal by TisA.

Clauses25to31

I19.IPF proposed amending the provisions to establish an independent nomination and appointment framework grants significant influence to the Executive, thereby creating a risk cf political interference and limiting the operational independence of the Board.

Committee Observation

The Committee agreed with the proposal by IPF.

Clause27

120.The Office oftheAuditor-Generalproposed amending theprovision tovest investrment policy, risk frameworks, and asset allocation decisions exclusively in the Board, while limiting the Cabinet Secretary to strategic oversight. The provision creates a conflict in roles by subjecting key decisions to the Cabinet Secretary. This weakensthe independenceoftheBoardandunderminesgovernanceand accountability.

Commit:teeObservation

The Conmittee acknowledged the proposal by OAG and was of the view thatthePFMActappliesinreferencetothemanagementoftheFund.

Clause 27(2)(d)

121. Bowmans proposed amending the provision to strengthen the operational independence of the Board by limiting the Cabinet Secretary's role to policy-level oversight and ensuring that day-to-day investment decisions are made by the Board s s e e s Funds, published by the International Forum of Sovereign Wealth Funds in October 2008) emphasizes the importance of operational independence of the governing body from political influence (Principles 6,16 and 22) 122. Amend the provision requiring Cabinet approval of investment policies by while the Cabinet Secretary may only receive the approved policy for information and

raise concerns in writing without exercising veto powers. TisA argued that Cabinet approval creates a risk of political control over investment decisions.

CommitteeObservation

The Committee acknowledged the proposal by Bowmans but was of the view that the PFM Act applies in reference to the management of the Fund.

Clause28

123.Bowmans proposed amending Clause 28(1)(f) to limit the influence of the Cabinet Secretary in the composition of the Board. They observed that the Bill as drafted gives the CS significant influence in the Board given they are mandate to nominate four (4) members.

124. IPF proposed amending the provision to provide for representation of professional bodies, youth, persons with disabilities, and civil society among the independent members of the Board.The provision does not guarantee representation of key stakeholder groups and professional expertise, thereby limiting inclusivity and diversity in the governance of the Fund.

125.Additionally, the stakeholder proposed amending the provision to include the Auditor-General and the Controller of Budget within the governance structure of the Fund. The provision does not adequately integrate institutions responsible for accountability and oversight, thereby weakening transparency and financial oversight mechanisms.

CommitteeObservation

TheCommitteeacknowledged andagreedwiththeproposalbyBowmans and IPF on the need for ensuring representation of persons with disabilities among members of the Board. Further, the Committee agreed on Parliamentary approval of members of the Board.

Clause 28(1)(b)-(e)

126. TisA proposed amending the composition of the Board by limiting Government representationtoonenon-votingobservernominatedby theNational Treasuryand replacingmembership of the Governor of the Central Bank of Kenya with a technical liaison arrangement. TisA argued that the current structure creates institutional conflicts of interest and undermines the independence of the Fund.

CommitteeObservation

The Committee acknowledged the proposal by TisA.

Clause 28(f)

ReportoftheDepartmentalCommitteeonFinanceandNationalPlanningontheConsideration ofTheSovereignWealthFundBill(NationalAssemblyBillNo.7of2O26)

127. CRA proposed amending the clause by providing for one of the four independent directors to be a Council of Governors representative. Additionally, they stated that there is need for other inclusivity parameters in the Board composition more specifically PWDs under sub clause 28(2).

Committee Observation

The Cormmittee acknowledged the proposal by CRA but was of a different view thattheBill did not concerncounty governments.

Clause 28(1)(f)

128.The Office of the Auditor-General proposed amending the provision to vetting,extend tenure,and clarify criteria for co-opted members.Theprovision lacks clear expertise requirements and vetting mechanisms. It allows co-option without defined criteria. This creates gaps in transparency, accountability, and independence.

CommitteeObservation

The Commnittee agreed with the OAG on the need for Parliamentary approvalofmembersoftheBoard.

Clauses 28,29 and 30

129.The Office of the Auditor-General proposed amending the provision to establish a clear mechanism for the initial staggering of Board terms, strengthen fiduciary duties, and require independent Board committees. The provisions do not specify how staggering will be implemented and provide for significant Executive

CommitteeObservation

The Committee acknowledged and agreed with the proposal by OAG.

Clause29

130. Bowmans proposed amending the Clause to require that the Board's composition shall include members with demonstrated investment management expertise. They submitted that the Bill does not expressly require that the Board include members with specific investment management or portfolio management experience. Given that the Board will be responsible for managing a sovereign wealth fund with investments s s se sss ss ssoe s b Schedule), this is a significant gap

Committee Observation

The Committee acknowledged the proposal by OAG and noted that the professionalqualificationsproposedintheBillweresufficient.

Clause 29(1)

13l. IPF proposed amending the provision to recognize leadership, innovation, governance, environmental management, and community development experience as alternative qualifications for youth representatives. The qualification requirements may inadvertently exclude qualified youth candidates despite constitutional requirements promotingyouthparticipationingovernance.

132. Additionally, the stakeholder proposed amending the provision to require

CommitteeObservation

professional qualifications proposed in the Bill were sufficient.

133.IF further proposed amending the provision to distinguish the qualifications applicabletotheChairpersonfromthoseapplicabletootherBoardmembers.The provisionappliessimilarqualification nrequirementstoofficeswithdistinct

Committee Observation

The Committee acknowledged the proposal by IPF and noted that the professional qualificationsproposed in theBillwere sufficient.

Clauses 29 and 38

134.TisA proposed amending the provisions relating to qualifications and conduct of requiring annual declarations of interest,a publicly accessible conflict-of-interest register, mandatory recusal procedures and a two-year cooling-off period for former Board members. TisA argued that the Bill does not contain sufficient safeguards against conflictsofinterest.

Committee Observation

The Committee acknowledged the proposal by TisA and noted that members of theBoard arerequired by theprovisions of theBill tomeet the requirements of Chapter Six which includes not conducting themselves in a manner that conflicts their personal interests with those of their public or official duties.

Clause30

135.IPF proposed amending the provision to provide for a non-renewable term of risk that Board members may seek to influence appointing authorities in order to securerenewaloftheirterms.

136. Additionally, the stakeholder proposed amending the provision to provide for non-renewable terms of office for Board members. Renewable appointments may undermine independence and create incentives for decisions influenced by prospects of reappointment.

Committee Observation

The Committee acknowledged the proposal by IPF; however, it noted that the Mwongozo Code of Covernance for State Corporations provides that Chairpersons, as members of the Board, are eligible for two terms of three years each.

Clause 33

137.IPFproposed amending the provision to establish Board committees aligned with the three components of the Fund.The provision does not prescribe a clear governance inefficiencies.

Committee Observation

The Committee acknowledged the proposal by IPF however, it noted that the Mwongozo Code of Covernance for State Corporations provides that Boards may establish not more than four committees.

Clause34

138.IPF proposed amending the provision to include misuse of insider information and abuse of privileged information among the grounds for removal from office.The provision does not expressly address misconduct arising from misuse of confidential

Committee Observation

The Committee acknowledged the proposal by IPF and noted that the proposals in theBillweresufficient.

Clause 35(2)

139.The Kenya Institute of Supplies Management proposed amending the Bachelor's degree. Paragraph (b) provides for a Master's degree requirement. The inconsistency may create ambiguity in interpretation and application of the qualification criteria. Alignment would ensure clarity and consistency.

CommitteeObservation

The Committee acknowledged the proposal by KisM; however, it noted that there was no inconsistency, as the provision required the CEO to have both a Bachelor's and a Master's degree.

I40. IPF proposed amending the provision to disqualify persons convicted of serious criminal offences from appointment as Chief Executive Officer. The provision does not expressly prohibit appointment of persons whose conduct may undermine public confidencein the administrationof theFund.

ComimitteeObservation

The Committee acknowledged the proposal by IPF, however, it noted that the Bill requires the CEO to meet requirement of Chapter Six of the Constitution.

Clause 35(3)(a)

I41.Kenya Institute of Supplies Management proposed amending the provision to increase the term of office from four (4) years to five (5) years. This is to align with the current Public Service Commission tenure.It would also promote consistency in public appointments and enhance stability in leadership.

CommitteeObservation

The Committee acknowledged the prcposal by KisM however, it noted that the Mwongozo Codeof Governance for State Corporationsprovides that theCEOmayservefor arenewable termof threeyears.

Clause 35 (3) (b)

142.SRC noted that the CEO is a public officer and Article 230 (4)(b) of the Constitution requires the SRC to advise on matters of remuneration and benefits. They proposed amending the clause to read as follows;-
"... upon the advice of the Salaries and Remuneration Commission in consultation with the Cabinet Secretary...'

CommitteeObservation

The Committee agreed with the proposal by SRC.

Clause 36(b)

I43. The Kenya Institute of Supplies Management proposed amending the provision to include removal where a person is convicted of an offence relating to public procurement. This would strengthen accountability and integrity in the governance.

CommitteeObservation

The Committee acknowledged the proposal by KisM however, it noted that theprovisionsof theBillwere sufficient.

Clause 37 (2)

I44.SRC stated that the staff of the Board are public officers and the SRC'S advisory the clause to read as follows; -
". upon the advice of the Salaries and Remuneration Commisson.."

Committee Observation

The Committee agreed with the proposal by SRC.

Clause39

I45.IPF proposed amending the provision to limit immunity from liability to actions undertaken in good faith and without negligence. The provision grants broad protection from liability, thereby creating a risk that negligent or improper conduct mayescapeaccountability.

146. Additionally, the stakeholder proposed amending the provision to exclude gross negligence, abuse of office, misuse of public resources, and violations of the Constitution from indemnity protections. The provision may be interpreted as extending protection to conduct that ought to attract personal accountability and legal consequences.

I47.Further, IPF proposed amending the provision to permit reimbursement of legal expenses only where an independentreview establishes that the officer acted in good faith and without negligence. The provision may permit public resources to be used in defence of conduct involving negligence, misconduct, or conflicts of interest.

Committee Observation

The Committee acknowledged the proposal by IPF however, it noted that theprovisionsoftheBillweresufficient.

Clause 40(2)

148.IPF proposed amending the provision to permit disclosure of information to Parliament, oversight institutions, auditors, and other authorized bodies. The provision may unnecessarily restrict disclosure of information required for accountability and effectiveoversightoftheFund.

CommitteeObservation

The Committee acknowledged the proposal by IPF however, it noted that theprovisionsoftheBillweresufficient.

Clause 41(2)

149. IPF proposed amending the provision to require authentication of the Fund's seal by the Chairperson, a Board member, and the Chief Executive Officer. The provision doesnotsufficientlyreflectshared accountabilitybetweentheBoard andmanagement in theexecutionofofficial instruments.

CommitteeObservation

The Committee ackrowledged the proposal by IPF however, it noted that the provisions of the Bill were sufficient.

Clause 41(3)

150. IPF proposed amending the provision to require authentication of Board decisions by the Chairperson,a Board member,and theChief Executive Officer.Theprovision does not provide adequate safeguards to ensure collective responsibility and accountability in theimplementation of Board decisions.

CommitteeObservation

The Committee acknowledged the proposal by IPF however, it noted that the provisions of the Bill were sufficient.

Clause 42

15l.Bowmans submitted that the Committee shouldreconsider the blanket prohibition on domestic investment and should consider permitting the Stabilization Component to invest in Kenyan government securities (Treasury bonds and bills) as

an additional category of qualifying instrument. This would enhance the Component's liquidity and reduce currency risk while maintaining the principle of avoiding domestic marketdistortionfortheothertwoComponents

152. They noted that the prohibition on domestic investment for the Future Generations Component and Strategic Infrastructure Investment Component is distorting domestic asset markets (a principle reflected in Santiago Principle I9.1). However, the same prohibition for the Stabilisation Component may be too restrictive. 153. Additionally, the Stabilisation Component is intended to provide the National Government with a buffer from revenue fluctuations and extraordinary shocks (Clause investments are tax-exempt. as proposed by Bowmans, then interest income will circulateintheKenyaneconomy.

154.The Office of the Audlitor-General proposed amending the provision to define admissible andnon-admissible investment instruments andintroducea tiered investment framework. The provision imposes a blanket prohibition without clear definitions. This creates ambiguity and limits diversification and return potential.

155. IPF proposed amending the provision to require periodic review and publication of prohibited investment instruments. The provision does not provide a mechanism for updating prohibited investments in response to evolving market conditions and emergingrisks.

CommitceeObservation

The Comunittee acknowledged the proposals by the stakeholders however, theComnnitteewasof theviewthatitwasimporrtant to ensureconsistency with the international practice of preventing sovereign wealth funds from distortingdomesticassetmarkets.

Clause43

156. CRA proposed amending the provision to provide that not more than l0% should be invested locally i.e. in the Nairobi Securities Exchange and in bonds. They noted thattheremaybeinstanceswherelocal investmentsmaybemorelucrative.

Committee Observation

The Committee acknowledged the proposals by CRA however, the Committee was of the view that it was important to ensure consistency distortingdomesticassetmarkets.

Clauses 43(2), 44(2) and 45(2)

157. TisA proposed amending the provisions restricting domestic investments by introducing a limited exception permitting the Strategic Infrastructure Investment Component to invest in qualifying Kenya-based instruments, subject to supermajority Board approval, parliamentary ratification, independent certification of commercial viabilityandfullpublicdisclosure.TisA arguedthatthe absoluteprohibitioncreates inconsistencies with the objective of financing strategic national infrastructure.

CommitteeObservation

The Committee acknowledged the proposals by TisA however, the Committee was of the view that it was important to ensure consistency distortingdomesticassetmarkets.

Clause46

158.IPF proposed amending the provision to require withdrawals from the StabilizationComponentandStrategicInfrastructureInvestmentComponenttobe expenditure outside established budgetary processes, thereby creating a risk of fiscal indiscipline and reduced transparency.

CommitteeObservation

The Committee acknowledged the proposal by IPF however, the Committee was of the view that the provisions in the Bill were sufficient.

Clause 46(b)

159.The Office of the Auditor-General proposed amending the provision to provide that any agreement collateralizing Fund assets is void, introduce sanctions, and requiredisclosures.Theprovisionprohibitscollateralizationbutlacksenforcement mechanisms.Thisweakens its effectiveness andexposes theFund to misuse.

Committee Observation

The Committee acknowledged the proposal by OAG however, the Committee was of the view that the provisions in the Bill were sufficient.

Clause 47(1)

160. IPF propcsed amending the provision to require public disclosure of investment performance, environmental, social and governance measures, and risk exposure corresponding transparency obligations.

CommitteeObservation

The Committee acknowledged the proposal by IPF however, the Committee was of the view that the provisions in the Bill were sufficient.

Clause 47(2)

16l. The stakeholder proposed an amendment to the provision to require periodic review of investment policies. The provision does not establish a clear mechanism for updating investment policies to reflect changing fiscal and market conditions.

CommitteeObservation

The Committee acknowledged the proposal by IPF however, the Committee was of the view that the provisions in the Bill were sufficient.

Clause 48

162. IPF proposed amending the provision to require submission of annual reports and financial statements to Parliament, the Auditor-General, and the Controller of Budget within prescribed timelines. The provision does not establish clear reporting timelines,

CommitteeObservation

The Committee acknowledged the proposal by IPF however, the Committee was of the view that the provisions in the Bill were sufficient and further the Committee proposed to reduce the period under clause 53 from6to3months.

Clause 48(6)

I63. IPF proposed amending the provision to align investment decisions with anticipated withdrawal requirements and the national budget cycle.The provision does not sufficiently link investment management decisions with future expenditure obligations of the Fund.

CommitteeObservation

The Committee acknowledged the proposal by IPF however, the Committee was of the view that the provision in the Bill was sufficient.

Clause 49(1)

172.Office of the Auditor-General proposed amending the provision to correct the referencefromSection54toClause56(l).Thecurrentreferencecreateslegal inconsistencyandconfusion.

Committee Observation

The Committee agreed with the proposal by the OAG.

Clause58

173. Office of the Auditor-General proposed amending the provision to harmonize the provision with thePublicFinance Management Act.The current wording creates legalconflictanduncertainty.

Committee Observation

The Committee agreed with the proposal by the OAG.

Clause60

174. CRA proposed including qualifications, powers and terms of office of an Interim Managerforclaritypurposes. 175. Kenya Institute of Supplies Mlanagement proposed amending the provision current provision does not set a time limit. This may result in prolonged interim appointments and uncertainty in management.A defined period would promote stability and proper governance of the Fund. 3. 176.TisA proposed amending the transitional provisions by limiting the tenure of the interim manager to ninety days, requiring the interim manager to meet the qualifications of the Chief Executive Officer, prohibiting withdrawals during the transitional period without prior concurrence of the Controller of Budget and requiringmonthlyreporting totheNationalAssembly.TisAarguedthatthecurrent

CommitteeObservation

The Committee agreed with the proposal by the stakeholders in requiring term of service and qualifications of the interim manager and staff. NewProposal

177. Bowmans proposed amending to expressly provide for the tax treatment of the express relief for income andgains of theFund and clarityon the treatment of withholding tax, value added tax, stamp duty and similar transaction taxes on services and instruments procured exclusively for the Fund. They submitted that Section I2G (4) (g) of the Income Tax Act currently exempts sovereign wealth funds from the

minimum top-uptax.However,this is notageneral income taxexemption.TheFund's investment income (including interest, dividends, rental income, and capital gains) would, in the absence of a specific exemption, be subject to income tax under section 3(2)of theIncomeTaxActand toCGTundertheEighthSchedule.

178.Subjecting the Fund's investment returns to tax would directly reduce the amounts availablefor theFund'sstatedpurposesundersection5oftheBill(macro-economic stabilisation, strategic infrastructure investment, and intergenerational savings), and contrarytointernationalbestpractice.

CommitteeObservation

The Committee acknowledged the proposal by Bowmans and noted that thiswill requirefurtherconsultationswithrelevantauthorities.

NewProvision

Dispute ResolutionFramework

179. Office of the AAuditor-General proposed the introduction of a dispute resolution framework, including internal review, mediation, and recourse to courts. The absence of such a mechanism mayresult in institutional conflict and operational inefficiencies.

Committee Observation

The Committee acknowledged the proposal by the OAG and noted that the PFM Act applies to the management of the Fund.

ThirdSchedule

Cap on Annual Management Fees

180. Kenya Institute of Supplies Management proposed amending the provision tocap theannual managementfeeunderparagraph2.Thecurrentprovisiondoesnot set a limit. This may lead to excessive charges and reduce the value of the Fund. A cap wouldpromote cost efficiency and safeguard theFund's resources.

CommitteeObservation

The Committee acknowledged the proposal by KisM and proposed capping the feetonotmorethan2%.

NewProvision

PeriodicSustainability Reviews of the Fund

I81.Law Society of Kenya proposed that the Bill be amended to provide for periodic sustainabilityreviewsoftheFundeveryfivetosevenyearssinceitdoesnotrequire assessment of the Fund's sustainability, performance, or underlying assumptions. This

in revenue streams going unnoticed. Periodic reviews would allow for adjustments to investment strategy, withdrawal limits, and governance practices. This would ensure the Fund remains resilient, adaptive, and sustainable for future generations.

Committee Observation

The Committee acknowledged the proposal by the LSK and noted that the proposals in theBillweresufficient.

NewProvisions

Mineral Development Levy

I82. The Ministry of Mining, Blue Economy and Maritime Affairs proposed inserting a newprovision to establisha Mineral Development Levy charged on the gross salevalue of mineralsandtoprovideforits administration through aMineral DevelopmentFund.TheBilldoesnotprovideadedicatedfundingmechanismfor enforcement, regulatory oversight, and development of the mining sector, thereby limiting the capacity of the State Department responsible for Mining to effectively dischargeitsmandate.

CommitteeQbservation

The Committee acknowledged the proposal by the Ministry and noted this requiredfurtherconsultations.

Mineral Development Fund

183. The Ministry of Mining, Blue Economy, and Maritime Affairs proposed inserting a new provision to provide for the establishment, administration,and PublicFinanceManagementAct.Theabsenceof astatutoryframework for accountability and utilization of funds collected from the mining sector.

Committee Observation

The Committee acknowledged the proposal by the Ministry and noted that this will require further consultations.

StrategicMineral Reserves

184. The Ministry of Mining, Blue Economy, and Maritime Affairs proposed inserting a new provision to grant the State a right of pre-emption over gold produced

strategic reserves, thereby limiting opportunities to strengthen national reserves and support long-term resource security.

CommitteeObservation

The Committee acknowledged the proposal by the Ministry and noted that thiswillrequirefurtherconsultations.

EewProvisions

PublicDisclosureofFundInformation

I85.IPF proposed insertion of a provision requiring publication of annual reports, audited financial statements, investment performance reports, and other key information relating to the Fund. The Bill does not expressly require proactive public disclosure of all Fund information, thereby limiting transparency and public oversight of the management and performance of theFund.

Committee Observation

The Committee acknowledged the proposal by IPF; however, it noted that (:he Bill required, under clause 53(2), the publication of che annual report OftheFund.

Funding of the Board and Secretariat Prior to Operationalization of the Fund

I86.IPF proposed insertion of a provision establishing a funding mechanism for the Board,ChiefExecutiveOfficer,andstaffbeforetheFundbecomesfullyoperational. "The Bill establishes governance structures but does not provide a clear transitional financing framework, thereby creating uncertainty regarding the operationalization of the Fund.

CommitteeObservation

The Committee acknowledged the proposal by IPF and noted that the provisions in the Bill were sufficient.

Integration of theFund into the Medium-Term Expenditure Framework

187. IPF proposed insertion of a provision requiring integration of the Fund into the Medium-TermExpenditureFramework and the national budgetprocess.TheBill does not expressly provide for the systematic incorporation of Fund planning into mediumterm fiscal planning, thereby creating a risk of disconnect between Fund management and national fiscal policy.

CommitteeObservation

The Committee acknowledged the proposal by IPF and noted that the PFM Act applies to the management of the Fund.

Oversight by the Controller of Budget

188. IPF proposed insertion of a provision requiring authorization of withdrawals by the Controller of Budget.The Bill does not expressly provide a role for the Controller of Budget in authorizingwithdrawals from theFund despite the Fund being established from public resources and intended for public purposes.

Committee Observation

The Committee agreed with the proposal by IPF.

Public Participation in Investment Decisions

I89.IPF proposed insertion of a provision requiring public participation and stakeholder consultation in determining strategic investment priorities of the Fund. investment decisions that may have significant economic, social, and environmental implications.

Committee Observation

The Committee acknowledged the proposal by the IPF and noted that the provisions in the Bill were sufficient.

Sustainability andPerformanceReviews

190. IPF proposed insertion of a provision requiring periodic independent reviews of the sustainability, performance, governance, and investment strategy of the Fund. The Bill does not provide for perioclic independent assessments of the Fund's long-term sustainability and performance, thereby creating a risk that emerging weaknesses may not be identified and addressed ini a timely manner.

CommitteeObservation

The Committee acknowledged the proposal by the IPF and noted that the PFM Act applies to the Bill.

Environmental, Social and Governance (EsG) Reporting

19l. IPF proposedinsertionof a provision requiring regular reporting on environmental, social and governance considerations in the management and investment activities of the Fund. The Bill does not expressly require ESG reporting despite the increasing importance of sustainable investment practices and responsible resource management.

Committee Observation

The Committee acknowledged the proposal by the IPF however, it noted that the mainpurpose of the Bill was investment of funds received from minerals and petroleum operations.

PreservationofFundReserves

192.IPF proposed insertion of a provision establishing preservation of the Fund's reserves as a primary objective of the Fund.The Bill does not expressly elevate preservation of reserves as a standalone statutory objective, thereby creating

Committee Observation

The Committee acknowledged the proposal by the IPF and noted the specifiedobjectivesoftheBill.

INewProvision

Controller ofBudget Oversight ofWithdrawals

193.TisA proposed introducing a requirement that all withdrawals from the Sovereign WealthFund and its componentsbe authorised by theController ofBudget and that periodicreportsonwithdrawalsandutilisationbesubmittedtotheControllerof Budget.TisA argued that the omission of the Controller of Budget creates a parallel withdrawal framework that bypasses independent constitutional oversight.

Committee Observation

The Committee agreed with the proposal by TisA.

3.2.5COUNTYSUBMISSIONS KIAMBUCOUNTY

194. The Committee engaged residents of Kiambu County on 2nd June 2026 at Kiambu National Polytechnic,Kiambu.The publicwas sensitized on the clauses of the Bill and thereafter allowed to give their views on the Bill. They submitted as follows: 195. The Bill should be amended to define 'future generations' explicitly and in detail. The definition should explain the scope for being termed as future generation, the age, and the effective start of terming persons as future generations. The residents submitted that the Bill was silent on when persons will begin to reap the benefits of theBill.

CommitteeObservation

The Committee acknowledged the proposal by members of Kiambu

196.The residents proposed that an allocation be made to fund mental health through funds raised in the Sovereign Wealth Fund Bill. They submitted that mental health remainsakeychallengeamongtheyouthwhoaremeanttobethekeybeneficiaries oftheBill.

CommitteeObservation

The Committee acknowledged the proposal by members of Kiambu County.

VIHIGACOUNTY

197. The Committee engaged residents of Vihiga County on 2nd June 2026 at Praise Centre Church, Mbale. The public was sensitized on the clauses of the Bill and thereafter allowedtogivetheirviewsontheBill.Theysubmittedasfollows: 2. 198.Support theBill, however,urge the government to prioritize measures that provide immediate relief toordinaryKenyans from theprevailingharsh economicconditions and high cost of living rather than focusing on future generation considerations while citizenscontinue tobeartheburdenofthecurrenteconomichardship. 199. Support the proposal but urges the Government to prioritize the setting up local factories within Vihiga County for value addition of agricultural produce such as tea to promote thecounty'seconomic development andcreate employmentopportunities for thelocals.Furthermore,thatdistributionofbenefitstakesintothedevelopment needs and not be basedsolelyon the existence of natural resources.They also emphasized that communities hosting natural resource should receive a fair share of thebenefitsgeneratedfromsuchresources. 4. 200.Amend the Bill to require the Board to submit to the INational Assembly annual reports of its operations for effective oversight and monitoring.

SIAYACOUNTY

201. The Committee engaged residents of Siaya County on 3rd June 2026 at Siaya Institute of Technology, Siaya. The public was sensitized on the clauses of the Bill and thereafter allowed to give their views on the Bill.They submitted as follows:

Clause 12(2)

202. Amend the proposal to expressly include fish landing sites and related infrastructure as an investment priority in the Strategic Infrastructure Investment communities living around lakes such as Siaya County residents and the coastline.

CommitteeObservation

The Committee acknowledged the proposal by members of Siaya County and noted that it had proposed infrastructure investment priorities related to minerals and petroleum operations.

203. Amend the Bill to recognize the Controller of Budget's mandate to approve withdrawal from the Fund as provided for in Article 228(5) of the Constitution. 2. 204.Amend the Billtorecognize theNational Assembly's oversight role over national revenue and its expenditure in accordance with Article 95(4)(c) of the Constitution. Furthermore, to ensure independent governance structures from Executive interference and advisory mechanisms to enhance accountability and transparency.

CommitteeObservation

The Committee acknowledged the proposal by members of Siaya County in requiring National Assembly's oversight.

MAKUENICOUNTY

205.The Committee engaged residents of Makueni County on 3rd June 2026 at Wote GreenPublicPark,WVote.The public was sensitized on the clauses of the Bill and thereafter allowedtogivetheirviewsontheBill.
206.Theresidentssubmitted thattheCommitteeshouldreview theBilltoascertain thegovernanceoffundscollectedundertheBill.Theresidentscalledonthe are rationalized toensure thatParliament,theAttorney General,theAuditor General andother stakeholders are abletohave checks and balanceswithregardto the use of funds.

Committee Observation

The Committee agreed with the proposal by members of Makueni County in requiring National Assembly's oversight.

207.TheresidentsofMakuenicalledontheCommittee toprovide that theprovisions of the Bill will be implemented without political interference. The residents submitted that the integrity of the Bill should be protected to ensure it serves the people.

Committee Observation

The Committee acknowledged the proposal by residents of Makueni County and noted that the Board is required to publish its report which ensure public accountability.

NYAMIRACOUNTY

208. The Committee engaged residents of Nyamira County on 4th June 2026 at West Mugirango NGCDF Hall, Nyamira. Although the public was sensitized on the clauses for informed decision making.

Committee Observation

The Committee acknowledged the proposal by members of Nyamira County.

TAITATAVETA

209. The Committee engaged residents of Taita Taveta County on 5th June 2026 at NGCDF Hall, Mwatate.The publicwas sensitized on the clauses of the Bill and thereafter allowed to give their views on the Bill. They submitted as follows: 2. 210.The residents of Taita Taveta submitted that fifty percent (50%) of the proceeds of natural resources should be retained in the community in which they are obtained.

Committee Observation

The Committee acknowledged the proposal by members of Taita Taveta County and noted that the Bill was not interfering with existing allocations.

2ll. The residents proposed that forty percent (40%) of the jobs assigned in the exploration of natural resources in a given area be assigned to the youth of the same county. The residents cited that youth remain unemployed despite their counties of origin having avenues for employment.

Committee Observation

The Committee acknowledged the proposal by residents of Taita Taveta Countyand notedthat thepurpose oftheBill wasinvestmentofFunds.

212.The residents called on the Committee to ensure the objectives and the intention of theBill are aligned.Theresidentssubmitted thattheobjectivesof theBill appear to be of benefit to the people but questioned whether the actual intention is as entailed in theBill.

CommitteeObservation

The Committee acknowledged the proposal by residents of Taita Taveta County.

BOMETCOUNTY

213. The Committee engaged residents of Bomet County on 5th June 2026 at St. Bakhita YouthTrainingHall,Bomet.Thepublicwassensitized onthe clausesof theBill and thereafter allowedtogivetheirviewson theBill.

214.Amend the Bill to ring-fence the proceeds from mining to ensure that the benefits accruedtherefromalsoflowtothelocalcommunitiesandcountiesfromwhichsuch resourcesareextracted.

Committee Observation

The Committee acknowledged the proposal by members of Bomet County and noted that the Bill was not interfering with existing allocations.

KILIFICOUNTY

215.The Committee engaged residents of Kilifi County on 8th June 2026 at Coast DevelopmentAuthority,Kilifi.The publicwas sensitized on the clauses of the Bill andthereafterallowedtogivetheirviewsontheBill.
216.Support the Bill, however but urges the governiment to prioritize measures that provide immediate relief to ordinary Kenyans from the prevailing harsh economic conditions andhighcostof livingratherthanfocusingonfuturegeneration considerationswhilecitizenscontinuetobeartheburdenofthecurrenteconomic hardship.

Committee Observation

The Committee acknowledged the proposal by members of Kilifi County and noted that the Bill was not interfering with existing allocations.

CHAPTERFOUR

4.COMMITTEEOBSERVATIONS

217.The Committee made the followingobservations:

Allocations to the respective components

1)In reference to transfers from the Holding Account, the Committee observed that Bill does not provide for an allocation formula of deposits from the Holding Account to the three components of the Fund.There was therefore need to provide a formula on how much of the deposits go to each of the respective componentsoftheFund.

WithdrawalofFunds

2)In reference to withdrawals from the Fund,the Committee observed that there was need to amend clauses I1, 14 and 17 by ensuring that no withdrawal shall be made without the written authority from the Controller of Budget in accordance with228(4)oftheConstitution.
3)Further, the Committee observed that the Bill does not provide for approval of Article 228(4) of the Constitution. Consequently, the Committee observed that the Board must submit quarterly financial and investment performance statements to the Controller of Budget at the close of each quarter.

National Assembly Oversight

4) On the National Assembly's oversight mechanisms, the Committee observed that therewas need toamendclause 28 toprovide for theNationalAssembly's approval in the appointment of the four persons to serve as members of the Sovereign Wealth Fund Board. The approval process will ensure that persons with disabilities are represented.

2. 5)Further,the Committee observed that it wasimperativefor theNational Assembly to approve all investment policies of the Fund upon approval by the Cabinet.

DepletionofMineral andPetroleumResources

, s a a p o r (em depletion"in reference to the provisions of depletion of mineral and petroleum resources.

PreservationofreservesoftheFund

7)TheCommitteeobserved thattheofficeof theController ofBudgetshould also be furnishedwith thereport prepared by the Board inreference tomonies standing to the credit of theFund at least three months before a general election. Further,this report should be submitted to the National Assembly at least three monthsbeforethegeneral election.

Reporting and Auditing

8) In reference to annual report of the Fund, the Committee observed that it was importanttoreducetheperiodfrom6to3monthsinwhichtheBoardshall to align with the provisions of the Public Finance Management Act, Cap. 412A.

Transitionalprovision

9)The Committee observed that it was imperative for the interim manager and staff tohave a specificterm of service and qualificationsprovidedfor in the Bill

Management fee of investmentfund manager

10) The Committee observed that there may be a need to cap the annual management fee payable to the investment fund manager.

CHAPTERFIVE

5.COMMITTEERECOMMENDATION

AssemblyBillNo.7of2026)recommendsthattheHouseapprovestheBillwith amendments.

SIGNED..

.DATE.

DEPARTMENTALCOMMITTEEONFINANCEANDNATIONAL

HON.FCPAKURIAKIMANI,CBS,MP CHAIRPERSON PLANNING

DATE:

2 4 JUN 2026

THENATIONALASSEMBLY

THIRTEENTHPARLIAMENT-FIFTHSESSION-2026

DEPARTMENTALCOMMITTEEONFINANCEANDNATIONALPLANNING

ADOPTIONLIST

REPORTONTHESOVEREIGNWEALTHFUNDBILL(NATIONALASSEMBLY NO.7OF2026)

We,theMembers of theDepartmental Committee onFinanceand National Planninghavepursuant toStanding Order199,adopted this Report and affix our signatures to affirm ourapproval and confirm its accuracy,validity and authenticity today,Wednesday,24thJune2026.

| S/NO. | NAME | SIGNATURE | |---------|----------------------------------------------------------|-------------| | 1. | HON.FCPA.KURIAKIMANI,CBS,MP- CHAIRPERSON | | | 2. | HON.FCPA(AMB).BENJAMINKIPKIRUILANGAT,MP -VICECHAIRPERSON | | | 3. | HON.KALUMAPETEROPONDO,CBS,MP | | | 4. | HON.GEORGESUNKUYIARISA,MP | | | 5. | HON.FCPAJOSEPHMAEROOYULA,OGW,MP | | | 6. | HON.ANDREWADIPOOKUOME,MP | | | 7. | HON.DAVIDMWALIKAMBONI,MP | | | 8. | HON.CHIFOROMODOMANGALEMUNGA,MP | | | 9. | HON. GATHONIWAMUCHOMBA,HSC,MP | | | 10. | HON.(CPA)JULIUSKIPLETTINGRUTTO,MP | | | I1. | HON.PAULKIBICHIYBIEGO,MP | | | 12. | HON.UMULKERSHEIKHKASSIM,MP | | | 13. | HON.DR.SHADRACKMWITIITHINJIMP | | | 14. | HON.DR.JOHNARIKONAMOIT,MP | | | 15. | HON.MOHAMEDSOUDMACHELE,MP | |

Machine-extracted text (docling) from a scanned document — may contain recognition errors. Original PDF — parliament.go.ke.

{# 360° link graph — topics this report is tagged with, and the members / legislation its text mentions. The mention data comes from legislation.EntityMention (extracted from the OCR text). #}

Report On Consideration Of The Sovereign Wealth Fund Bill (na Bill No. 7 Of 2026)

THENATIONALASSEMBLY

REPORT ON:

TABLEOFCONTENTS

LISTOFABBREVIATIONSANDACRONYMS

ANNEXURES

CHAIRPERSON'SFOREWORD

IPREFACE

I.IESTABLISHMENTANDMANDATEOFTHECOMMITTEE

CHAPTER ONE

1.2COMMITTEEMEMBERSHIP

Chairperson

Vice-Chairperson

UDA Party Members

I.3COMMITTEESECRETARIAT

Ms.Tracy Chebet Principal ClerkAssistantIl /Head ofSecretariat

CHAPTERTWO

2.0OVERVIEWOFTHESOVEREIGNWEALTHFUNDBILL(NATIONAL ASSEMBLY BILL NO.7 OF 2026)

2.1Background

2.2 Summary of Legal Provisions

OverviewoftheBill

SourcesoffundsoftheFund

Components of the Fund

Depletion of Mineral and PetroleumResources

Public Finance Management Principles

ChiefExecutiveOfficer

Manageme:nt of the Fund

Reporting and audit of the Fund

Misappropriation of funds

Preservationof thereserves of the Fund

CHAPTERTHREE

3.PUBLICPARTICIPATIONANDSTAKEHOLDERENGAGEMENTON THE BILL

3.ILEGALFRAMEWORKONPUBLICPARTICIPATION

3.2MEMORANDARECEIVEDONTHEBILL

3.2.ITHENATIONALTREASURY

Committee Observation

3.2.2THEOFFICEOFCONTROLLEROFBUDGET

Committee Observation

Part Il

CommitteeObservation

Part III - Public Finance Management Principles

CommitteeObservation

PartIV-ManagementoftheFund

ComnnitteeObservation

PartV-InvestmentoftheFund

Committee Observation

WithdrawalsfromtheFund

Committee Observation

Part Vll -Report on and Audit of the Fund

Committee Observation

PartVlll-MiscellaneousProvisions

Committee Observation

3.2.3YOUTH FORSUSTAINABLEDEVELOPMENT(YSD)-MAKUENI CHAPTERCBO

CommitteeObservation

3.2.4CLAUSEBYCLAUSESUBMISSIONS

Committee Observation

Clause3

CommitteeObservation

Clause 3(2)

Committee Observation

Clause 4

CommitteeObservation

Clause 5(2)

CommitteeObservation

CommitteeObservation

Clause 6

CommitteeObservation

82.Bowmansproposed that Clause 6 be amended to:

CommitteeObservation

Clause6(1)(h)

CommitteeObservation

CommitteeObservation

Clause8andClause15

CommitteeObservation

Clause9

CommitteeObservation

CommitteeObservation

The Committee agreed with the proposal by the Auditor General.

CommitteeObservation

CommitteeObservation