As Kenya marks 60 years of independence and the world observes 36 years since the fall of the Berlin Wall, one thing is clear: no foreign power should dictate our economic future. The time for a Sovereign Wealth Fund (SWF) is now. The lack of one is a mistake we can no longer afford, and we must avoid the financial pitfalls that have ensnared major global economies.
Learning from the Mistakes of Others
The United States, despite being an economic powerhouse, faces mounting fiscal challenges. Its Social Security system is on the brink of insolvency, and the federal deficit continues to skyrocket. Rather than implementing sustainable financial strategies, US leadership has resorted to raising taxes and diverting public attention with political theatrics. This is a cautionary tale for Kenya—we cannot afford to rely on short-term fixes or external dependencies.
Europe presents a similarly grim picture. The United Kingdom, once buoyed by its former colonies, the global use of English, and its GMT time zone advantage, is now in decline. France, which for decades profited from exploitative policies toward its former colonies, faces internal strife as it struggles to implement necessary economic reforms. The Yellow Vest protests and the widespread opposition to pension reforms illustrate the deep economic frustrations among its citizens. These are stark reminders that failure to build resilient financial mechanisms leads to inevitable crises.
The Case for a Kenyan Sovereign Wealth Fund
Kenya must take a different path—one that ensures our financial independence and long-term stability. A Sovereign Wealth Fund would serve as a buffer against economic downturns, provide resources for future generations, and support critical investments in infrastructure, education, and healthcare. Many resource-rich nations have used SWFs to their advantage. Norway, for instance, has one of the largest and most successful SWFs in the world, ensuring its citizens benefit from oil revenues for generations.
We have the foundation to build our own SWF. Kenya boasts a dynamic economy, a growing tech sector, and increasing foreign investment. However, without a well-structured SWF, we risk squandering these opportunities and remaining at the mercy of foreign economic policies and aid dependencies.
The Path Forward
The Kenyan government must act decisively. Establishing a Sovereign Wealth Fund requires strong legal frameworks, transparent management, and strategic investment policies. We must prioritize domestic economic growth and safeguard our resources from mismanagement and corruption.
Sixty years after independence, it is time to break free from economic neocolonialism. Thirty-six years after the fall of the Berlin Wall, we must assert our financial sovereignty. The time for a Kenyan Sovereign Wealth Fund is now. Let us not wait until we are forced into economic crises before taking action.
