NAIROBI - Kenya's cabinet has approved the creation of an infrastructure fund ‍and a sovereign ‍wealth fund to finance projects such as roads ​and power plants and ease pressure on public borrowing, it ⁠said on Monday.

President William Ruto said in October the infrastructure fund ⁠would invest in ‌key sectors without increasing public debt to levels that have strained public finances in recent ⁠years.

"Both funds will be professionally and independently managed under clear governance, transparency and accountability frameworks," the cabinet said in a statement.

Alongside government funding, the funds will ⁠be open to investors including ​pension funds, sovereign partners, private equity firms and development finance institutions, it added.

Kenya ‍has one of the highest debt-service-to-revenue ratios in Africa after ramping ​up borrowing to build infrastructure over the past decade.

Earlier this month, Finance Minister John Mbadi said proceeds from the government's sale of a 15% stake in telecoms firm Safaricom would provide initial capital for the two funds.

Another source of money will be a planned share sale in state-owned Kenya Pipeline Company, which manages petroleum transport infrastructure in Kenya and into ⁠neighbouring states.

The funds will also be ‌used to boost electricity generation. Kenya, which has 2,300 megawatts of installed capacity, needs at least 10,000 megawatts to ‌industrialise, ⁠Ruto said in October.