The government plans to borrow more than Sh100 billion to finance the expansion and modernisation of Jomo Kenyatta International Airport (JKIA), as it moves to increase the airport’s capacity to handle more than 22 million passengers annually by 2045.
The new details emerge as the Ministry of Roads and Transport pegs the total cost of the JKIA upgrade at a maximum of Sh154.2 billion, with 70 per cent of the funding expected to come from debt financing.
Transport Cabinet Secretary (CS) Davis Chirchir said the government has engaged two development finance institutions (DFIs) to structure the financing model, with airport-based revenues and the National Infrastructure Fund (NIF) expected to contribute 30 per cent of the total cost.
Ministry of Roads and Transport Cabinet Secretary Davis Chirchir during a press briefing at Transcom House in Nairobi on June 18, 2026.
Photo credit: Francis Nderitu | Nation Media Group
“As regards financing of the project, the Government is working on structuring a financing model and has onboarded the Trade Development Bank and the Africa Finance Corporation as lead arrangers. We need to raise 30 per cent equity and go to lenders for 70 per cent debt,” the CS said.
He said the financing plan will leverage airport-based revenue streams, while the arrangers crowd in additional capital from commercial lenders and other investors.
Under the plan, the government would contribute about Sh46 billion, while approximately Sh107 billion would be raised through borrowing.
“We are looking at funds from the NIF as part of the funding of this project. We want to reduce the pricing of risk using NIF funding. We don’t intend to use NIF to plug the full 30 per cent, but if it contributes about five to nine per cent, it could help reduce the cost of debt,” Chirchir said.
The CS spoke as he denied allegations linking Zimbabwean businessman Wicknell Chivayo to the planned JKIA upgrade.
The clarification comes amid pressure from civil society groups, lawyers and MPs demanding transparency over the procurement process, with one lobby group filing a court case challenging it.
CS Chirchir said Mr Chivayo does not appear in any bidding documentation as a contractor, partner or joint-venture member.
“We don’t know this gentleman. I saw him for the first time in the media. He is not in any of our documentation, whether as a bidder or partner to any of the bidders,” he said.
The CS said only two firms submitted bids after 40 companies that initially expressed interest were eliminated during a pre-bid stage earlier this year.
The bidders are Chinese firms China Road and Bridge Corporation (CRBC) and Sinohydro, both experienced in major infrastructure projects across Africa.
Travelers at Jomo Kenyatta International Airport in Nairobi.
Photo credit: Wilfred Nyangaresi | Nation Media Group
The Ministry said the evaluation process is ongoing and expected to conclude next week, adding that no contract has been awarded and final details will be made public after evaluation.
“I’ve done my homework when I saw this man in the headlines,” he said.
He added that the project is not expected to exceed Sh154.2 billion, noting that it is about 20 per cent cheaper than comparable airport projects in Africa.
The estimate assumes a construction cost of about $3,900 per square metre, compared to an average of $4,500 in similar international projects.
“There is no contract that has been signed,” the CS said.
He was accompanied by Aviation and Aerospace Development Principal Secretary Teresiah Mbaika and Kenya Airports Authority Managing Director Moses Wekesa.
The government launched procurement for the project on March 3, 2026, through an open international competitive bidding process, which closed on May 14.
The project covers rehabilitation and expansion of existing airport infrastructure as well as construction of new facilities to transform JKIA into a regional aviation hub.
The upgrade will raise terminal capacity from 7.5 million passengers annually to 12 million, while a new terminal will handle up to 10 million passengers per year, with space reserved for future expansion.
Construction of the new terminal is expected to take 36 months, while rehabilitation of the airfield is projected to take 15 months.
