In a late-night judicial decision that has paralyzed the government’s premier development program, the High Court has given a conservatory order that stopped the implementation of the highly debated National Infrastructure Fund (NIF).
The verdict, which was pronounced on Wednesday, December 24, 2025, effectively swallows the legal padlock on billions of shillings that were meant for large-scale road, rail, and water projects throughout the nation.
Justice Lawrence Mugambi granted the freeze following a petition that contested the constitutionality of the fund’s management structure.
The court’s involvement comes at a very important moment when the Kenya Kwanza administration was about to make great infrastructure improvements under the “broad-based” governance framework.
The petition, which was submitted under a certificate of urgency, contends that the National Infrastructure Fund was created without proper public involvement, which is a violation of one of the core tenets of the 2010 Constitution.
In addition, the petitioners allege that the fund would bypass necessary parliamentary oversight and thus create a “shadow exchequer” that would be vulnerable to misuse.
The most surprising twist in this legal fight is the claim that the NIF’s design intentionally excludes county governments. Despite the fund being promoted as a national engine of growth, the court was informed that it accumulates power in Nairobi, thus denying regional authorities their constitutional right to determine local development priorities.
This “centralization trap” has led to a silent revolt among governors who think that the state is taking over their functions.The High Court’s ruling has a major and immediate impact on the construction sector.
The freezing of the fund has now placed the existing tenders and the proposed public-private partnership (PPP) projects in a legal limbo. Analysts are cautioning that this judicial hurdle could cause a further postponement of the key transport corridors, which would in turn lead to huge penalties for breaching contracts with international contractors.
The ruling at the state house is a big blow for them. The National Infrastructure Fund was planned to be the major source for the implementation of the “Singapore-style” development that President William Ruto had promised.
The government would then have very little to show as development before the 2027 General Election due to this.






