Kenya will set up sovereign wealth and infrastructure funds to drive $31 billion in development spending over the next decade, President William Ruto has announced. The plan marks a shift from years of heavy borrowing that left the country with one of Africa’s highest debt-to-revenue ratios.

Ruto said the new funds will back roads, railways, airports, power generation, and irrigation projects. The fund will be financed through privatisations, budget allocations, and private investment. The first privatisation, a sale of a stake in Kenya Pipeline Company, could raise about $1 billion.

Kenya, which has 2 300 megawatts of power capacity, aims to add 10 000 megawatts to spur industrialisation. Economists say the approach could restore investor confidence, though Ruto’s U-turn on fiscal restraint risks reigniting debt concerns in East Africa’s largest economy.