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Ruto: Funds from Kenya Pipeline IPO will be used to expand JKIA
Security checks at the entrance of the Jomo Kenyatta International Airport in Nairobi.
Kenya will use Sh15-Sh20 billion from an initial public offering (IPO) of shares in Kenya Pipeline Company to expand Kenya's main airport, President William Ruto said on Monday.
The government said last week that it had raised Sh106.3 billion by selling a 65 percent stake in Kenya Pipeline Company and that proceeds would be earmarked for projects like highways, railways and ports.
It has also said that Nairobi's Jomo Kenyatta International Airport is operating beyond capacity and requires modernisation.
"The expansion of the Jomo Kenyatta International Airport will be the first major project financed through this new model of financing under the National Infrastructure Fund," President Ruto said.
"Between Sh15 and Sh20 billion from the National Infrastructure Fund, from the proceeds of the Kenya pipeline IPO will go to financing the seed money for the expansion of Jomo Kenyatta International Airport."
He added: "The expansion of JKIA will be the first major project financed through this new model...It will be structured with approximately Sh20 billion in equity participation from the National Infrastructure Fund and domestic institutional investors."
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