Kenya will channel part of the proceeds from the recent initial public offering (IPO) of shares in the Kenya Pipeline Company to expand its main international airport in Nairobi, President William Ruto said Monday.
The government plans to allocate between 15 billion and 20 billion Kenyan shillings (up to about 155 million dollars) to support the expansion of Jomo Kenyatta International Airport, the country’s busiest aviation hub.
The funds will come from the proceeds raised through the partial privatisation of the state-owned pipeline operator, which recently attracted strong investor interest.
Kenya announced last week that it had raised 106.3 billion shillings after selling a 65 percent stake in the Kenya Pipeline Company through the IPO.
Authorities said the funds generated from the share sale would be directed toward major infrastructure projects, including highways, railways, ports and airports.
Speaking in Nairobi, Ruto said the airport expansion would be the first project financed under a new financing framework established through the government’s National Infrastructure Fund.
“The expansion of the Jomo Kenyatta International Airport will be the first major project financed through this new model of financing under the National Infrastructure Fund,” he said.
“Between 15 and 20 billion shillings from the National Infrastructure Fund, from the proceeds of the Kenya pipeline IPO will go to financing the seed money for the expansion of Jomo Kenyatta International Airport.”
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The move comes as authorities seek to modernise the airport and address growing congestion at the facility, which serves as East Africa’s largest aviation gateway.
Government officials say passenger numbers and cargo traffic have grown significantly in recent years, putting pressure on the airport’s existing infrastructure.
Located in the capital Nairobi, the airport is the main base for the national carrier Kenya Airways and serves as a major transit hub connecting Africa with Europe, the Middle East and Asia.
Officials have warned that the facility is operating beyond its intended capacity and requires urgent upgrades to handle rising demand.
The planned expansion is expected to include improvements to passenger terminals, cargo facilities and supporting infrastructure to enhance efficiency and increase capacity.
Analysts say upgrading the airport is critical for Kenya’s ambitions to strengthen its position as a regional aviation and logistics hub.
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Improved airport infrastructure could also support growth in tourism, trade and investment by improving connectivity and reducing congestion.
The government has in recent years sought to accelerate infrastructure development through a mix of public funding, private investment and innovative financing mechanisms.
The National Infrastructure Fund, which will channel resources from strategic asset sales such as the pipeline IPO, is intended to mobilise capital for large-scale development projects without placing excessive pressure on public finances.
Kenya’s infrastructure strategy focuses on expanding transport networks to support economic growth and improve regional trade links across East Africa.
Major investments in roads, railways, ports and airports are seen as central to the country’s long-term development plans.
The IPO of the Kenya Pipeline Company marked one of the largest recent privatisation moves by the Kenyan government and formed part of broader efforts to raise funds for development while encouraging greater private sector participation in state-owned enterprises.
Officials say proceeds from such transactions will help finance projects that enhance productivity, improve logistics and strengthen Kenya’s competitiveness as a regional economic hub.
At the latest exchange rate, one U.S. dollar was equivalent to about 129.10 Kenyan shillings.
