Kenya to Borrow Over KSh100 Billion for JKIA Upgrade

The government plans to borrow more than Sh100 billion to finance the expansion and modernisation of Jomo Kenyatta International Airport. The move aims to increase the airport’s capacity to handle more than 22 million passengers annually by 2045.

Transport Cabinet Secretary Davis Chirchir put the total project cost at a maximum of Sh154.2 billion. Around 70 per cent of that amount would come through debt financing while the rest would be equity contributions.

The ministry has engaged two development finance institutions as lead arrangers. Airport-based revenues and the National Infrastructure Fund are expected to cover the 30 per cent equity portion.

Chirchir said the financing structure would leverage existing revenue streams from the airport. Arrangers would then bring in additional capital from commercial lenders and other investors to complete the package.

Under current projections the government contribution stands at about Sh46 billion. Roughly Sh107 billion would be raised through borrowing.

The cabinet secretary spoke during a briefing at Transcom House in Nairobi. He was joined by Aviation and Aerospace Development Principal Secretary Teresiah Mbaika and Kenya Airports Authority Managing Director Moses Wekesa.

Chirchir used the occasion to address recent allegations linking Zimbabwean businessman Wicknell Chivayo and his firm IMC Construction to the project. He stated clearly that neither appears in any bidding documentation.

Only two firms submitted bids after an initial pre-bid stage eliminated 40 other interested companies. The remaining bidders are Chinese firms China Road and Bridge Corporation and Sinohydro.

The procurement process opened on March 3 through open international competitive bidding and closed on May 14. Evaluation is ongoing and expected to conclude next week with no contract yet awarded.

The project involves rehabilitation and expansion of existing infrastructure together with construction of new facilities. Officials aim to transform JKIA into a stronger regional aviation hub.

Current terminal capacity sits at 7.5 million passengers per year. The upgrade will raise that to 12 million while a new terminal will add capacity for up to 10 million passengers with room for further growth.

Construction timelines differ by component. The new terminal is expected to take 36 months while airfield rehabilitation should take 15 months.

The estimated construction cost works out to about $3,900 per square metre. This figure is roughly 20 per cent lower than averages seen in comparable airport projects across Africa.

Pressure has mounted from civil society groups, lawyers and members of parliament for greater transparency in the process. One lobby group has already filed a court case challenging aspects of the procurement.

Chirchir insisted the government remains committed to full disclosure once evaluation finishes. He said he personally checked the documentation after media reports surfaced.

JKIA serves as East Africa’s busiest airport. Its expansion forms part of broader efforts to strengthen aviation infrastructure and support economic growth through improved connectivity.