Kenya has taken a significant step toward transforming its main international gateway after signing a 154.2 billion Kenyan shilling ($1.2 billion) agreement with China Road and Bridge Corporation (CRBC) to expand and modernise Jomo Kenyatta International Airport (JKIA) in Nairobi.

The ambitious project, announced by Transport Cabinet Secretary Davis Chirchir, is expected to dramatically increase the airport’s capacity and reinforce Kenya’s position as East Africa’s leading aviation hub at a time when regional competitors are investing heavily in airport infrastructure to attract airlines, passengers and international investment.

Under the agreement, JKIA’s annual passenger handling capacity will rise from the current 7.5 million passengers to 22 million, nearly tripling the airport’s ability to accommodate growing travel demand.

The expansion is also expected to improve operational efficiency, reduce congestion and position Nairobi to better compete with rapidly expanding aviation centres across the continent.

The announcement marks the revival of a project that faced uncertainty last year after the Kenyan government terminated a previous agreement signed with India’s Adani Group in 2024. The cancellation followed legal troubles involving the conglomerate’s founder in the United States, forcing authorities to seek alternative partners and financing arrangements for one of the country’s most strategic infrastructure projects.

By securing a new agreement with the Chinese construction giant, Kenya is signalling its determination to proceed with a project viewed as critical to the country’s long-term economic and transport ambitions.

“The project scope includes the construction of a new terminal building and associated support facilities, the modernization and upgrading of existing infrastructure, the improvement of airside and landside operations.”
Davis Chirchir

The Minister added that the project will also focus on enhancing operational efficiency and improving service delivery for passengers and airlines using the airport.

Jomo Kenyatta International Airport serves as Kenya’s primary international gateway and one of Africa’s busiest airports. It plays a central role in connecting East Africa to global destinations while supporting tourism, trade, investment and cargo transportation.

However, growing passenger numbers and increasing pressure on existing facilities have highlighted the need for substantial expansion. Industry analysts have long argued that without significant upgrades, Kenya risks losing competitive ground to neighbouring countries pursuing aggressive aviation development strategies.

Ethiopia, through Addis Ababa’s Bole International Airport and plans for a new mega-airport, has positioned itself as a major continental aviation player through Ethiopian Airlines. Rwanda has similarly invested in airport expansion projects and broader efforts to establish Kigali as a regional aviation and business hub.

Against this backdrop, Kenyan authorities view the JKIA project as essential to maintaining the country’s strategic role in regional and international air transport networks.

The expansion programme is scheduled to be completed within 36 months and will involve extensive infrastructure improvements across the airport complex. In addition to a new terminal building, the project includes upgrades to existing facilities, improvements to both airside and landside operations and the development of supporting infrastructure designed to enhance passenger experience and operational performance.

Moreover, the airport’s arrival capacity will also increase significantly, enabling it to handle up to 31 aircraft movements per hour compared to the current 25. This improvement is expected to ease congestion, shorten turnaround times and improve scheduling flexibility for airlines.

Kenyan Government Turns to New Financing Model to Deliver Strategic Infrastructure Project

A key aspect of the airport expansion is its financing structure, which reflects the government’s efforts to balance infrastructure development with fiscal realities.

Transport officials recently confirmed that the government has appointed the Trade and Development Bank (TDB) and the Africa Finance Corporation (AFC) to arrange financing for the project. The institutions are expected to play a central role in mobilising resources needed to deliver the large-scale expansion programme.

According to government plans, the State will borrow up to Ksh.100 billion while contributing approximately Ksh.50 billion in equity. The financing model is designed to leverage future airport revenues, allowing the project to be funded through a combination of public investment and debt backed by anticipated growth in passenger traffic and airport operations.

The Kenyan government further noted that this approach will enable Kenya to modernise one of its most important national assets without placing the entire financial burden on taxpayers.

The Kenya Airports Authority (KAA) is expected to serve as the implementing agency responsible for overseeing project execution and ensuring that construction progresses according to schedule.

The decision to move forward with the CRBC agreement follows months of uncertainty surrounding the airport’s future development plans. Last year’s cancellation of the Adani Group deal raised concerns about delays to a project widely viewed as essential for the country’s transport infrastructure and economic competitiveness.

The new agreement is therefore being seen not only as a construction contract but also as a signal of policy continuity and renewed investor confidence.

For Kenya, the stakes are high. Aviation remains a critical driver of tourism, international trade and foreign investment. Nairobi’s position as a regional business centre depends heavily on efficient air connectivity, while national carrier Kenya Airways continues to rely on JKIA as its primary hub.