Hardly eight months after President William Ruto cancelled the planned lease of the Jomo Kenyatta International Airport (JKIA) to Adani Group, the government has unveiled a new funding strategy for the expansion of the main airport.
Transport Cabinet Secretary Davis Chirchir now says that the government has been in talks with six different development financial institutions to fund the renovation of JKIA.
Among the development institutions potentially involved in funding JKIA’s expansion are the European Investment Bank, the German Development Bank, the French Development Bank, the Japan International Cooperation Agency (JICA), the Abu Dhabi Fund for Development, and the China Exim Bank.
President Ruto’s administration has since contacted the above-mentioned institutions and is awaiting feedback on how to fund the redevelopment of the main airport using the airport’s balance sheet.
Speaking on Tuesday, July 8, during an interview with Citizen TV, the CS expressed the government's commitment to breaking ground for JKIA's revamp before the end of this year.
"We are conscious, our airport got burnt, and the airport is in a tent. We are working on the clock to see whether we can break ground before the end of the year," Chirchir said.
The CS went on to argue that JKIA’s expansion would attract more airlines to the country, making it easier for Kenya’s national carrier to partner with other airlines.
Chirchir also noted that the airport's expansion would boost the tourism sector, which has long contributed significantly to Kenya’s economic growth.
“It doesn’t help us as a tourism destination to deny frequencies into Nairobi because when you look at the revenue mix from tourism to imports and exports, more importantly to exports, we are one of the fourth-largest producers of flowers today," he stated.
On November 21, 2024, President Ruto cancelled an agreement with Adani for the expansion of the airport over alleged controversial clauses in the deal that were shrouded in secrecy.
Addressing parliamentarians, he directed the Ministries of Transport and Energy to cancel deals proposed by the Adani Group to take over the country's infrastructure in the energy and aviation sectors.
"I hereby direct the Ministries of Transport and Energy to immediately cancel the ongoing procurement process for the JKIA Expansion as well as the recently concluded KETRACO transmission line contract, and immediately commence the process of onboarding alternative partners," Ruto directed.
