Kenya has appointed two of Africa’s leading development finance institutions to arrange funding for a major expansion of Nairobi’s Jomo Kenyatta International Airport.
The government signed deals with the Trade and Development Bank (TDB) and the Africa Finance Corporation (AFC) to structure and mobilise financing for the project, which is expected to cost up to 154.2 billion Kenyan shillings, or approximately $1.2 billion.
Construction is projected to take three years once implementation begins.
The expansion aims to increase the airport’s annual passenger handling capacity to 22 million, nearly tripling its current level. The project forms part of a broader strategy to modernise Kenya’s transport infrastructure and strengthen Nairobi’s position as one of Africa’s key gateways for trade, tourism and investment.
The financing plan marks the latest chapter in Kenya’s efforts to overhaul the airport after a previous arrangement with India’s Adani Group collapsed in 2024. The government cancelled that agreement following the indictment of the conglomerate’s founder in the United States, forcing Nairobi to seek alternative funding and implementation models.
According to Transport Minister Davis Chirchir, the project will be financed primarily through airport-generated revenues, with TDB and AFC tasked with attracting additional support from development finance institutions and commercial lenders. The approach reflects a growing trend among African governments to leverage the cash-generating potential of strategic infrastructure assets rather than relying solely on sovereign borrowing.
Kenya has been exploring multiple funding options for the airport’s expansion as it seeks to balance infrastructure development with concerns over public debt. Earlier this year, President William Ruto said part of the proceeds from the Kenya Pipeline Company’s initial public offering would provide seed capital for the project through the National Infrastructure Fund.
The airport upgrade is expected to include expanded passenger facilities and supporting infrastructure designed to accommodate growing traffic volumes. Jomo Kenyatta International Airport has long been operating under capacity constraints, prompting repeated calls from business groups and aviation stakeholders for modernisation.
An international competitive procurement process for implementation has already been completed, according to the transport ministry. The financing arrangement now represents one of the final major hurdles before construction can move forward.
For Kenya, the project is about more than airport infrastructure. It is part of a wider effort to strengthen economic competitiveness, improve connectivity and position the country to capture a larger share of regional trade and travel flows. If successfully financed and delivered, the expansion would rank among East Africa’s most significant transport infrastructure projects in recent years.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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