Recently, Kenya’s Cabinet gave the nod to setting up of a Sovereign Wealth Fund (SWF), which establishes a framework for management and investment of among others, revenues from Kenya’s mineral resources, an attractive proposal in principle and politically appealing.
In theory, the proposal promises intergenerational equity and long-term national wealth creation. In practice, however, this ambition risks becoming wishful thinking unless several bare minimum conditions are first met within Kenya’s mining sector and its fiscal architecture.
