Do we have more sustainable options?  Kenya, with little fanfare, is rewriting the script in answering these existential questions.

Over the past few years, Kenya has enacted a sweep of legislation culminating into  the most ambitious domestic capital mobilization framework on the African continent. Its centrepiece, a KSh 5 trillion National Infrastructure Fund, which is not another borrowing vehicle.

It is something structurally different: a mechanism designed to make Kenya’s own savings, its pension funds, its retail investors, its private equity market, do the work that foreign debt was never built to do sustainably.

The problem it is solving is rarely discussed in development economics circles, though it should be. Africa’s infrastructure financing gap, estimated at $68 to $108 billion a year by the African Development Bank, is not primarily a shortage of money.

There is no shortage of capital in the world. The shortage is of investable projects: opportunities where private capital can be mobilised  without facing crippling sovereign risk, opaque regulatory environments, or legal frameworks that shift mid-contract. That uncertainty is not a footnote.

It is the reason trillions of dollars in global private capital have largely bypassed the continent.

“The shortage is not of money. It is of investable projects, and the legal certainty that makes them possible.”

The National Infrastructure Fund established as an Act of Parliament addresses this directly. By absorbing sovereign and legal risk at the project level, it removes the uncertainty that forces private investors to demand prohibitive risk premiums or walk away entirely.

It acts as a structural buffer between the Kenyan state and the market, giving development finance institutions, private equity funds, domestic pension managers, and local retail investors a common platform on which to participate without exposure to the regulatory volatility that has stalled projects across the continent for a generation.

The financing pathway is streamlined: due diligence burdens shrink, incentives align between public and private participants, and patient long-term capital, the kind infrastructure actually requires, finds a credible home.

The KSh 5 trillion pipeline of dams, roads, and urban transit becomes financeable not because Kenya has borrowed more, but because the NIF makes the risk profile legible and acceptable to capital that previously had nowhere in Kenya to go.

This matters beyond Kenya’s borders. Rwanda built a competitive economy from near-zero after 1994. Botswana converted diamond revenues into one of Africa’s most stable development trajectories through the Pula Fund.

Mauritius became a continental financial hub through regulatory design alone. These nations did not succeed by waiting for the global financial architecture to serve them.

They engineered their own conditions for growth. Kenya is now doing the same, at greater scale, and with instruments far more sophisticated than anything its predecessors had available.

The human dimension of this architecture is equally significant. The recently executed 65 percent IPO of the Kenya Pipeline Company, targeting KSh 100 billion on the Nairobi Securities Exchange, was the largest state offering since Safaricom’s landmark 2008 listing.

When an ordinary Kenyan in Kisumu or Eldoret can hold shares in the pipeline that carries fuel to their town, development stops being something administered from above and becomes something people own, a democratisation of sovereign wealth.

A proposed Sovereign Wealth Fund, with an intergenerational component anchored in the Kenyan laws, extends the same logic forward in time: today’s resource revenues become tomorrow’s infrastructure, rather than today’s debt service.

None of this works without legal ingenuity. The legal profession across Africa must stop treating transformative legislation as a courtroom opportunity and start treating it as architecture to be designed soundly from the outset; an opportunity to co-create with an intention of catalysing and not curtailing growth. Innovation in finance and innovation in law must move together, or neither moves fast enough.

In this journey, perfection ought to be modelled in a kaizenian fashion; incremental. Waiting for perfection may altogether kill the opportunities and ultimate achievements.

As Mohammed bin Rashid Al Maktoum, the architect of Dubai’s own transformation from desert outpost to global financial hub, once observed:

“Time is too precious to waste on postponing our people’s dreams and expectations.”

Africa’s legal community would script history to take that as its mandate.

The World Bank estimates that a 10 percent increase in infrastructure investment can raise long-term GDP growth by one to two percentage points in emerging economies. Those numbers translate into jobs, hospitals, schools, and the material improvement of lives.

Kenya’s new framework will not automatically deliver them. Discipline, transparency, and governance that is genuinely insulated from political interference will determine whether the architecture performs or corrodes.

Africa does not need to borrow its way to prosperity. It needs to build its way there, using the assets it already owns, the savings it already holds, and the institutions it must now have the courage to build.

The opportunity is not merely economic. It is civilisational.

*Eric Gumbo (MBS) is a partner at G&A Advocates LLP, a firm with two decades of experience advising on sovereign funds, capital markets, and regulatory law across East Africa.

Ndegwa, who stepped into the CEO role in April 2022, has been steadily building his stake since holding just 895,000 shares in 2021. 

At Safaricom’s closing price of KES 25.70 per share on Monday, his total shares are worth approximately KES 223.6 million ($1.73 million).

Some of this growth came through direct purchases, but a significant portion resulted from the company’s Employee Performance Share Award Plan (EPSAP), an incentive scheme designed to tie executive performance directly to shareholder returns.

In the 2025 financial year, Ndegwa received KES 45 million ($349,955) worth of shares as part of his total pay package of KES 294.2 million ($2.2 million), securing his place as the highest-paid executive on the Nairobi Securities Exchange (NSE).

Safaricom’s EPSAP works by the company buying shares on the open market and allocating them to key staff at no cost, subject to a three-year holding period. Once vested, employees can either retain or sell them.

The strategy aims to align employee goals with corporate objectives and discourage talent loss to competitors.

It’s not just Ndegwa benefiting, as Safaricom’s Chief Financial Officer, Dilip Pal, increased his own holding by 65% in the same period, now controlling 2.2 million shares valued at KES 56.5 million ($436,787). His investment shows similar faith in the company’s future.

These executive rewards follow a turnaround in Safaricom’s financials. The company posted an 11% rise in net profit to KES 69.8 billion ($540 million) for the year ended March 2025, a recovery after two years of flat growth blamed largely on heavy spending in Ethiopia.

Growth was fuelled by a surge in mobile money and data services, alongside narrowing losses in Ethiopia.

“Safaricom Ethiopia hit 10 million active customers by July 2025,” the company disclosed, reporting 270% revenue growth to 7.2 billion birr, tripling its mobile money transactions through M-PESA Ethiopia. The firm also rolled out 3,141 active sites, covering 50% of the Ethiopian population with 4G services and creating over 20,000 indirect jobs.

The bigger picture for Safaricom is equally strong. Total revenues surpassed $3 billion for the first time, with KES 388.7 billion reported for FY2025. M-PESA accounted for KES 139.9 billion, or 36% of total service revenues. Data usage across both Kenya and Ethiopia also spiked significantly.

While Safaricom’s expansion into Ethiopia initially dragged down profits, management has stayed assured. The latest results appear to justify that.