Kenya engages TDB and AFC to secure $1.2 billion for airport expansion financing
Kenya has engaged Africa’s Trade and Development Bank and Africa Finance Corporation to secure financing for a $1.2 billion expansion of its primary airport in Nairobi, according to the transport minister.
The East African nation is working to significantly increase Jomo Kenyatta International Airport’s annual passenger handling capacity to 22 million. However, the project was put on hold last year after the cancellation of a deal with India’s Adani group in 2024, following the indictment of its founder in the United States. The project is designed to be funded by utilizing revenue streams generated from the airport. Transport Minister Davis Chirchir stated late on Thursday that “the arrangers will crowd in development financial institutions and commercial banks.
The project is anticipated to have a maximum cost of 154.2 billion shillings ($1.19 billion), he stated, and the construction period will span three years.
He stated that an international, competitive bidding process for implementing the project had already occurred.
Reports from both local and international media indicate that the China Communication Construction Company has secured the contract. The minister did not respond to the reports.
The project entails the rehabilitation of current airport facilities, which includes runways and aprons, as well as the construction of a new passenger terminal aimed at increasing the annual passenger handling capacity from 7.5 million to 22 million.
Kenya is determined to uphold its status as a travel hub in the region, despite Ethiopia and Rwanda investing billions in new airports to attract airlines and travelers.
The country is exploring new methods to finance infrastructure following a surge in debt that has strained its finances.
