The Ministry of Roads and Transport has introduced stringent financial evaluation criteria for international companies that are bidding for the expansion of Jomo Kenyatta International Airport (JKIA).
Prospective construction firms must formally demonstrate access to at least Sh100 billion in cash or liquid assets, according to the official tender documentation.
The rigorous condition requires bidders to submit concrete proof of liquid resources, debt-free real assets, or active credit lines secured within the last six months.
This financial baseline ensures that the contracting firm can easily sustain the heavy cash flow demands of the major aviation infrastructure development.
The project operates under a strict deferred payment framework, meaning that the winning bidder must finance substantial portions of the early works independently.
According to the procurement criteria, the selected contractor will receive an initial upfront payment of 10 percent only after providing a secure bank guarantee.
A second tranche of 20 percent will follow when the works hit the 50 percent completion threshold, or after 18 months.
The ministry will release 25 percent upon the official project handover, while the remaining 45 percent is held until the defects liability period lapses.
Bidders must submit a formal letter addressed to the accounting officer, if they want to confirm their unconditional acceptance of these deferred payment schedules.
In addition to the multi-billion-shilling liquidity requirement, companies must provide a hefty tender security of Sh2.5 billion to secure their bids.
This specific bid security must remain fully valid for a period of 210 days from the formal date of the tender opening.
The government requires several mandatory legal compliance documents, although it highlights a valid registration certificate from the National Construction Authority (NCA) and a practising licence.
Firms must also attach an official incorporation certificate alongside a valid tax compliance certificate issued by the Kenya Revenue Authority (KRA).
Bidders must submit an official CR12 document to verify company ownership, and a power of attorney witnessed by a Commissioner for Oaths.
The Ministry of Roads and Transport has made attendance at pre-bid meetings and organized site visits completely mandatory for all interested engineering firms.
A registered professional engineer or architect must represent the bidder at these site briefings, and obtain a signed site compliance certificate.
The infrastructure development project, which is budgeted at Sh154.2 billion, will significantly increase the overall operational footprint of the regional aviation hub.
The current terminal facilities handle roughly 7.5 million passengers annually, but growing traffic volumes have caused significant operational capacity constraints.
The modernization program will boost the annual capacity to 22 million passengers, which will enhance Nairobi's standing against competing regional airports.
The engineering works involve comprehensive rehabilitation of the existing airfield over 15 months, and updating terminal infrastructure over 18 months.
Contractors will build a new international terminal to handle 10 million passengers annually, plus additional aircraft parking bays and taxiways.
Roads and Transport Cabinet Secretary Davis Chirchir emphasized that the entire procurement process follows an open international competitive bidding format.
The Cabinet Secretary clarified that the procurement is still actively ongoing, which dismisses recent social media reports of an early award.
The government has engaged the Trade and Development Bank (TDB) and the Africa Finance Corporation (AFC) to structure the project financing.
The Ministry of Roads and Transport maintains that the final contract value will remain strictly within the designated Sh154.2 billion ceiling.
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