Kenya Secures Financing Plan for $1.2 Billion Nairobi Airport Expansion

Kenya has secured financial arrangers for a $1.2 billion expansion of Nairobi's Jomo Kenyatta International Airport. The project will increase annual passenger capacity from 7.5 million to 22 million through a new terminal and upgraded facilities. Construction is expected to take three years as Kenya seeks to strengthen its position as a regional aviation hub.

Kenya has secured the services of Africa's Trade and Development Bank and the Africa Finance Corporation to arrange financing for the planned expansion of its main international airport in Nairobi, a project estimated to cost about $1.2 billion, according to the country's transport minister.

Transport Minister Davis Chirchir said in a statement released late on Thursday that the project would be financed by leveraging revenue generated from airport operations. He explained that the appointed financial arrangers would work to attract funding from Development Finance Institutions as well as commercial banks to support the ambitious infrastructure project.

The East African nation is seeking to significantly increase the capacity of Jomo Kenyatta International Airport, with plans to raise its annual passenger handling capacity from the current 7.5 million passengers to 22 million passengers. The expansion programme had previously been delayed after Kenya cancelled an agreement with India's Adani Group in 2024. The cancellation followed the indictment of the company's founder in the United States, forcing authorities to halt progress on the airport development project.

According to Chirchir, the airport expansion is expected to cost no more than 154.2 billion Kenyan shillings, equivalent to approximately $1.19 billion. He added that construction work is projected to take about three years to complete once implementation begins.

The minister stated that an international competitive bidding process had already been conducted to select a contractor for the project. However, he did not comment on reports carried by both local and international media outlets indicating that China Communication Construction Company had emerged as the successful bidder for the contract.

The planned upgrade will include the rehabilitation and modernization of existing airport infrastructure, such as runways and aircraft aprons. In addition, a new passenger terminal will be constructed as part of efforts to boost the airport's capacity and improve passenger services. Once completed, the expanded facility is expected to handle up to 22 million passengers annually, nearly tripling its current capacity.

Kenya is determined to maintain its status as a leading aviation and travel hub in East Africa at a time when regional competitors are making major investments in air transport infrastructure. Both Ethiopia and Rwanda have committed billions of dollars toward the development of new airports aimed at attracting more airlines, passengers, and international connections.

At the same time, the Kenyan government is exploring alternative financing mechanisms for large-scale infrastructure projects as it seeks to address financial pressures caused by a sharp increase in public debt. The search for new funding sources is part of broader efforts to continue investing in critical infrastructure while managing the country's fiscal challenges.