Kenya to Fund JKIA Expansion Using Pipeline Company IPO Proceeds

Kenya will use 15–20 billion shillings from the Kenya Pipeline Company IPO to expand Jomo Kenyatta International Airport in Nairobi, which is operating above capacity. The funds come from the National Infrastructure Fund, and a new airport adjacent to JKIA has also been proposed.

Kenya plans to allocate between 15 billion and 20 billion Kenyan shillings (up to about $155 million) from the proceeds of an initial public offering of shares in Kenya Pipeline Company to expand the country’s main international airport in Nairobi, President William Ruto announced on Monday.
The Kenyan government said last week that it successfully raised 106.3 billion shillings through the sale of a 65% stake in Kenya Pipeline Company. Authorities noted that the funds generated from the IPO would be directed toward key national infrastructure projects, including the development and improvement of highways, railway networks and port facilities across the country.
Officials have also indicated that Jomo Kenyatta International Airport, the main aviation gateway serving Nairobi and one of the busiest airports in East Africa, is currently operating beyond its intended capacity and urgently requires expansion and modernization to accommodate the increasing number of passengers and flights.
President Ruto explained that the airport expansion project will become the first major infrastructure initiative financed through a new funding framework created by the government. According to him, the project will be funded through the National Infrastructure Fund, a mechanism designed to channel proceeds from government asset sales and investments into critical national development projects.
He stated that between 15 billion and 20 billion shillings from the National Infrastructure Fund—sourced from the Kenya Pipeline Company IPO—will be used as seed funding for the expansion of Jomo Kenyatta International Airport.
In addition to the planned expansion, the Kenyan government has taken further steps to boost aviation infrastructure. Last week, it launched a tender for the construction of a new airport to be built adjacent to Jomo Kenyatta International Airport in Nairobi, which would help ease congestion and improve passenger handling capacity.
Current data shows that the airport is already experiencing significant pressure. As of 2025, Jomo Kenyatta International Airport handled approximately 9 million passengers annually, which is well above its original design capacity of 7.5 million passengers per year. This growing demand has increased the urgency for expansion and modernization efforts aimed at improving the airport’s facilities and operational efficiency.