The government has appointed the Africa Finance Corporation and the Trade and Development Bank to arrange financing for the upgrade of Jomo Kenyatta International Airport, Kenya’s busiest airport and one of East Africa’s most important travel gateways.
Transport Minister Davis Chirchir said the project is expected to cost up to 154.2 billion Kenyan shillings, about $1.19 billion, and will be financed by leveraging airport-based revenue streams.
“The project is intended to be funded through leveraging of airport-based revenue streams. The arrangers will crowd in Development Financial Institutions and commercial banks,” Chirchir said.
The project will include the rehabilitation of existing terminals and airfield facilities, upgrades to runways and aprons, and construction of a new passenger terminal.
Once completed, JKIA’s annual passenger handling capacity is expected to rise to more than 22 million, from about 7.5 million currently.
That would give Kenya more room to grow tourism, business travel, cargo traffic and regional connections. It would also help Nairobi defend its role as one of Africa’s busiest aviation hubs.
The earlier plan would have seen Adani involved in upgrading and operating the airport under a long-term arrangement.
The cancellation was politically significant in Kenya, where the proposed airport deal had already faced public opposition, including concerns from workers and critics who feared job losses, loss of control over a strategic national asset and lack of transparency.
No contractor has been confirmed
The renewed project has also been surrounded by fresh claims over who will build the airport.
However, Kenyan officials have denied that a contract has been awarded.
Chirchir said procurement is still ongoing and that no final award has been made. He also rejected reports that the project would cost 375 billion shillings, saying the government does not expect the contract value to exceed 154.2 billion shillings.
Kenya is still under pressure to prove that the new process is more transparent than the Adani arrangement it abandoned.
East Africa’s airport race
The airport is designed to eventually handle up to 110 million passengers a year, strengthening Ethiopian Airlines’ position as Africa’s dominant carrier.
Rwanda is also developing Bugesera International Airport, a major project backed by Qatar Airways.
The airport is designed to help Kigali become a stronger aviation and tourism hub, with future capacity expected to rise in phases.
This suggest Kenya may be competing on airport quality, airline connectivity, passenger experience and cargo capacity.
For Kenya Airways, JKIA’s growth is especially important. The national carrier depends heavily on Nairobi’s role as a transit hub linking Africa with Europe, the Middle East and Asia.
If JKIA remains congested while rivals build larger and more modern airports, Kenya risks losing traffic, airlines and investment to competing hubs.
Airports are no longer just transport facilities. For countries such as Kenya, they are economic engines linked to tourism, exports, logistics, conferences, regional trade and foreign investment.
JKIA is particularly important because Nairobi is a major base for multinational companies, international organisations and regional business travel.
A modernised airport could strengthen Kenya’s position as a gateway into East and Central Africa. It could also support cargo exports such as flowers, fresh produce and high-value goods, which depend on fast and reliable air links.
The challenge is execution. Kenya must now deliver the project without repeating the political controversy that surrounded the Adani deal.
