Expert urges Kenya to channel resource wealth into sovereign fund

Eric Gumbo, a partner at G&A Advocates LLP, has called on Kenya to urgently channel its growing natural resource revenues into a sovereign wealth fund, warning that failure to build strong institutions could squander the country’s economic future.

 

Gumbo said Kenya stands at a critical turning point similar to moments that shaped major global achievements, urging policymakers to act decisively to secure long-term prosperity.

 

Drawing parallels with the United States’ historic space ambitions, Gumbo referenced NASA’s Artemis II mission as an example of how bold national goals are built incrementally over time through sustained commitment and institutional strength.

 

“Kenya is not a poor country imagining wealth. It is a resourced country deciding whether to spend that wealth on today or invest it in tomorrow,” he stated.

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 The proposed sovereign wealth fund framework, currently under consideration, seeks to pool revenues from oil, minerals, privatisation proceeds and strategic investments into a structured financing mechanism. 

 

 

According to Gumbo, the fund would serve three main purposes: stabilising government revenues during commodity price shocks, financing critical infrastructure, and preserving savings for future generations.

 

Kenya’s oil reserves are estimated at about 560 million barrels, with annual resource revenues projected to exceed $1.5 billion, raising the stakes for how the funds are managed.

 

Gumbo cautioned that without strong governance, Kenya risks repeating the experience of Nigeria, where decades of oil wealth have not translated into broad-based development, particularly in producing regions.

 

He pointed to global best practices such as the Santiago Principles, which emphasise transparency, accountability and independent oversight, as essential safeguards to ensure the fund delivers long-term value.

 

Examples from other African economies show the potential upside. Botswana’s Pula Fund and Ghana’s petroleum funds have helped stabilise their economies and preserve wealth for future generations, largely due to disciplined governance structures.

 

Gumbo also highlighted Kenya’s track record of innovation, citing milestones such as M-Pesa and the 2010 Constitution as evidence that the country can build systems that endure and inspire global adoption.

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However, he stressed that the success of a sovereign wealth fund would depend on institutional independence, transparency and visible impact on citizens’ lives, including investments in healthcare, education and job creation.

“When we extract minerals from Kenyan soil today, we are drawing down on a balance sheet that does not belong to us alone,” he said, warning that resource wealth must be managed as an inheritance for future generations.

He added that the fund should be treated not merely as a savings mechanism, but as a long-term national commitment to sustainable development, backed by strong legal and governance frameworks.