The government has said that it plans to finance the proposed Sh154.2 billion expansion of Jomo Kenyatta International Airport (JKIA) through airport-generated revenues, with two African multilateral financial institutions leading efforts to structure the funding model.
In a status report on the airport modernisation programme, the Ministry of Roads and Transport said the government has appointed the Trade and Development Bank (TDB) and the African Finance Corporation (AFC) as lead arrangers for the project financing.
The ministry said the two institutions will structure a financing framework that leverages revenues generated by JKIA rather than relying solely on direct government funding.
"The project is intended to be funded through leveraging of airport-based revenue streams," the ministry said.
Under the proposed arrangement, TDB and AFC will mobilise additional financing from development finance institutions and commercial banks to support implementation of the project.
The government said both institutions are multilateral development finance organisations in which Kenya is a shareholder alongside other African countries.
The financing plan comes as the government advances procurement for the airport's proposed expansion, which includes rehabilitation of existing terminals and airfield infrastructure as well as construction of a new passenger terminal.
According to the ministry, the project goes beyond building a new terminal and will also involve upgrading existing facilities, expanding aircraft aprons and taxiways, improving utility infrastructure and modernising aviation systems.
The government said the airport expansion is necessary to address growing passenger numbers and increasing pressure on existing infrastructure.
Once completed, JKIA's annual passenger handling capacity is expected to rise from 7.5 million to 22 million passengers.
The ministry also defended the project's anticipated cost, arguing that comparisons with similar airport developments in the region show the planned investment is competitive for a project of its scale and complexity.
It further maintained that the procurement process has been conducted transparently and in compliance with public procurement laws.
The government said the modernisation programme is a strategic investment aimed at strengthening Kenya's competitiveness in regional aviation, tourism, trade and cargo operations.
