Kenya Taps Regional Lenders to Arrange $1.2bn Financing for JKIA Expansion

Kenya, June 19, 2026 - The Kenyan government has turned to regional development finance institutions to mobilise $1.2 billion (Sh155 billion) for the expansion of the country's main aviation gateway, signalling a shift away from privately financed concession models that previously sparked public opposition. According to reports, the government has appointed the Trade and Development Bank and the Africa Finance Corporation to arrange financing for the modernisation and expansion of Jomo Kenyatta International Airport. The financing package forms part of Kenya's broader strategy to upgrade critical infrastructure while reducing reliance on traditional sovereign borrowing amid mounting debt pressures. The expansion project is expected to include the construction of a new passenger terminal, a second runway and upgrades to supporting infrastructure at JKIA, which has been operating beyond its designed capacity as passenger and cargo traffic continue to grow. The latest financing plan comes less than two years after the government cancelled a proposed deal with India's Adani Group, which would have seen the company finance, expand and operate the airport under a long-term concession agreement. The proposal faced significant public opposition, legal challenges and concerns over transparency before it was terminated in late 2024. Kenya has since adopted a different approach that places ownership and oversight of the airport expansion under the government while seeking financing from development institutions. Transport Cabinet Secretary Davis Chirchir previously explained the shift in strategy, saying the government intends to build the airport infrastructure first before considering any future concession arrangements. "Instead of bringing concessioning to build the airport, we build the airport that we can concession later," Chirchir said. The airport expansion is a key component of Kenya's long-term aviation master plan, which runs through 2045 and aims to position Nairobi as a leading regional transport and logistics hub. Planned improvements include expanded terminal capacity, upgraded runways, enhanced cargo facilities and improved landside access infrastructure. The project is also expected to benefit from the newly established National Infrastructure Fund, which President William Ruto said would channel proceeds from the partial privatisation of the Kenya Pipeline Company into strategic infrastructure projects. Ruto previously announced that between Sh15 billion and Sh20 billion from the proceeds of the Kenya Pipeline Company initial public offering would provide seed capital for the airport expansion. The move to secure financing through regional development institutions reflects the government's efforts to balance infrastructure investment with fiscal sustainability as it seeks alternative funding models for large-scale projects without significantly increasing pressure on public finances.