Kenya Seeks Sh260bn for JKIA Upgrade After Adani Exit

Kenya is seeking international development lenders to fund a Sh260 billion expansion of Nairobi’s Jomo Kenyatta International Airport (JKIA), nine months after scrapping a controversial deal with India’s Adani Group.

Transport Minister Davis Chirchir said the government had “written” to agencies including the Japan International Cooperation Agency, China Exim Bank, Germany’s KfW, the European Investment Bank, and the African Development Bank. 

“We have basically told them there is an opportunity to build the airport through the Jomo Kenyatta International Airport, borrowing on its balance sheet,” Chirchir told journalists in Nairobi.

According to the plans, a second runway and a new terminal building will be constructed at JKIA, East Africa’s busiest aviation hub. The government hopes the project will strengthen Nairobi’s standing as a regional transport gateway, competing with Addis Ababa and Kigali.

Unlike the abandoned Adani arrangement, which would have given the Indian conglomerate a 30-year lease to operate the facility, the government intends to finance construction itself before considering future concessions.

“Instead of bringing concessions to build the airport, we build the airport so that we can concession it later,” Chirchir said.

RELATED: Why Uhuru Killed Sh56bn Greenfield Terminal Project

The Adani deal collapsed in 2024 after U.S. prosecutors indicted founder Gautam Adani and several executives, alleging they paid bribes to secure Indian power contracts and misled American investors. 

The company dismissed the accusations as “baseless” and vowed to cooperate with investigators. President William Ruto subsequently ordered the cancellation of Adani-linked infrastructure agreements, including a Sh95.7 billion power transmission project.

Kenya is also turning to capital markets to finance infrastructure as debt pressures mount. Chirchir confirmed the government would issue a securitised bond worth Sh175 billion next month to fund road construction. 

The bond, backed by a share of the fuel levy, will be split between local and offshore listings. “It is too early to say in which foreign market the bond would be sold,” Chirchir noted.

With lenders now reviewing Nairobi’s proposal, the JKIA expansion could mark one of the Ruto administration’s most ambitious projects—though its success will hinge on attracting international support without deepening the country’s debt burden.

Join 15,000+ pros getting our weekly digest of news and insights.