The Kenyan government has appointed the Trade and Development Bank Group - TDB Group and the Africa Finance Corporation (AFC) as lead arrangers to structure financing for the long-delayed $1.2 billion expansion and modernisation of Jomo Kenyatta International Airport (JKIA). TDB and AFC are tasked with structuring this financing and crowding in other development finance institutions and commercial banks to reach financial closure.
The project aims to almost triple the airport’s annual passenger capacity from the current 7.5 million to 22 million. It involves expanding the existing terminal to handle 12 million passengers and constructing a new terminal with capacity for an additional 10 million passengers annually. The project is expected to take 36 months to complete after the contract is awarded.
Transport Cabinet Secretary Davis Chirchir said the financing will be structured largely off the government’s balance sheet, leveraging airport-generated revenues such as service charges. The model envisages 30% equity and 70% debt financing.
“The project is intended to be funded through leveraging of airport-based revenue streams,” Chirchir said.
The government also intends to use the National Infrastructure Fund (NIF) to help de-risk the project. NIF will take a small stake in the equity portion, which is expected to help define the cost of debt, attract other investors, and avoid reliance on high-risk, expensive market financing that could make the project uncompetitive.
Chirchir noted that the NIF will operate according to the standards of a Development Finance Institution (DFI). As it is designed to support multiple infrastructure projects across sectors such as water, energy, roads, and ports, the fund will practice capital recycling and will not commit its entire resources to a single asset like JKIA in order to maintain financial stability.
The NIF was established following the passage of the National Infrastructure Fund Bill, 2026 by the National Assembly in February. The landmark legislation aims to mobilise nearly KSh 5 trillion over the next decade, shifting Kenya’s infrastructure financing from a debt-driven model to a sustainable, investment-led approach by attracting both public and private sector capital for strategic projects in transport, energy, water, ports, and other key sectors.
The Kenyan government was forced to pause the project last year after cancelling a planned deal with India’s Adani Group in 2024 following the indictment of its founder in the United States.
The minister firmly rejected media reports suggesting higher costs, stating that the contract award will not exceed KSh 154.2 billion (approximately $1.2 billion). He dismissed figures as high as KSh 375 billion as inaccurate. Further updates are expected once the tender evaluation is completed and a preferred bidder is announced.
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