Kenya has appointed the Trade and Development Bank (TDB) and Africa Finance Corporation (AFC) to arrange financing for a US$1.2 billion expansion of its main airport in Nairobi, as the country seeks to strengthen its position as a regional aviation hub.
Transport Minister Davis Chirchir said the government had contracted the two African development finance institutions to structure funding for the expansion of Jomo Kenyatta International Airport.
The project is expected to cost a maximum of 154.2 billion Kenyan shillings ($1.19 billion) and will be financed through airport-based revenue streams, with development finance institutions and commercial banks expected to participate.
“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 in a statement.
Construction is expected to take three years.
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The expansion aims to nearly triple the airport’s annual passenger handling capacity from 7.5 million passengers to 22 million by upgrading existing facilities, rehabilitating runways and aircraft parking areas, and constructing a new passenger terminal.
The project comes after Kenya suspended an earlier plan involving India’s Adani Group following the cancellation of a proposed agreement in 2024 after the group’s founder faced legal challenges in the United States.
The government said a competitive international bidding process for the new project had already been completed, although the minister did not comment on reports that China Communications Construction Company had secured the implementation contract.
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Kenya is seeking to modernise its aviation infrastructure as competition grows among East African countries looking to attract airlines, tourists and international business.
Neighbouring Ethiopia and Rwanda have invested heavily in airport development as they attempt to expand their roles as regional transport and travel hubs.
Nairobi’s airport is already one of the busiest aviation facilities in East Africa and serves as a major gateway for tourism, trade and regional connectivity.
The expansion is also part of Kenya’s wider effort to find alternative ways of financing large infrastructure projects after rising public debt reduced the government’s fiscal flexibility.
By using airport revenues to support financing, authorities hope to limit pressure on public finances while still delivering major infrastructure improvements.
The government has identified aviation as a key driver of economic growth, with improved airport capacity expected to support tourism expansion, cargo movement and Kenya’s ambition to remain a leading commercial centre in the region.
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The project’s success will depend on securing financing, completing construction on schedule and ensuring the expanded facilities meet growing demand from passengers and airlines.
