Time flies with great content! Renew in to keep enjoying all our premium content.
Prime
Kenya to spend Sh38.7bn from State asset sale on JKIA expansion
Kenya's President William Ruto addresses the Africa Forward Summit 2026 at the Kenyatta International Convention Centre (KICC), in Nairobi, Kenya on May 12, 2026.
Kenya will use Sh38.7 billion from the proceeds of Kenya Pipeline Company stake sale to expand Jomo Kenyatta International Airport (JKIA).
President William Ruto on Tuesday revealed that the country will pump the billions from the National Infrastructure Fund into the upgrade of the main Nairobi airport as he courted global investors to tap into the investment.
The Sh38.7 billion amounts to 20 percent of the estimated Sh193.7 billion total cost needed for JKIA revamp and less than two years after it cancelled a controversial deal with India's Adani Group.
President Ruto says that by the close of July, the National Infrastructure Fund is expected to have Sh387.4 billion worth of seed capital, following proceeds from the Kenya Pipeline IPO and the partial divestiture from Safaricom Plc.
Kenya has earlier mentioned plans to raise a bond or a long term loan that will be guaranteed by the passenger service levy under securitisation.
Under securitisation, projected future revenue streams are packaged into marketable securities that are sold to investors.
The government in securitisation taps capital from private bondholders at an agreed rate of return and is secured by projected cash flows from an existing fund or levy.
It talked of use of Sh18.5 billion from the air passenger service levy, a fee $50 (Sh6,450) for international journey tickets and Sh600 for domestic, to back the bond set for the expansion of JKIA.
“I want to tell the investors that you are not going to invest alone, we as government are also going to invest so that when you make money, we also make money for our people,” President Ruto said in remarks to the Africa Forward Summit.
“We are going to invest so that we can de-risk that investment. We are building a new airport in Nairobi which is going to cost us around $1.5 billion and it presents an opportunity for investment. Government of Kenya is going to put in 20.0 percent,” he added.
The areas identified for immediate investment at JKIA are enhancement of the existing terminal and runway infrastructure; digitalisation and modernisation of passenger processing systems, including check in and security screening; and reconfiguration and expansion of terminal facilities.
President William Ruto signed the National Infrastructure Fund Bill into law on March 9, 2026, ushering in a new era where privatisation proceeds are ring-fenced for purposes of financing the development of critical national infrastructure.
So far, the Sh106.3 billion worth of proceeds from the government’s divestiture of a 65.0 percent stake in KPC have been channeled towards the National Infrastructure Fund forming as seed capital.
Kenya had earlier invited international development lenders to finance the JKIA expansion after the botched concession deal with Adani Group, following indicted in the United States.
The government had informed development agencies of an opportunity to build the airport, borrowing on its balance sheet.
The Japan International Cooperation Agency, China Exim, KFW, the European Investment Bank and the African Development Bank had been contacted.
Adani sought to expand JKIA under a 30-year lease to operate Kenya premier airport.
That plan was scrapped last year when US authorities indicted Gautam Adani and several executives, alleging they paid bribes to secure Indian power contracts and misled US investors.
