Kenya has turned to international development lenders to help finance a $2 billion expansion of Nairobi’s main airport, nine months after scrapping a deal with India’s Adani Group in the wake of legal troubles surrounding its founder in the United States.
The East African country, facing sharply rising debt and under pressure to find alternative ways to fund major infrastructure, is also preparing to issue a securitised bond worth 175 billion shillings ($1.36 billion) next month. The bond will be used to support road construction projects and will be listed both locally and overseas, according to Transport Minister Davis Chirchir.
Chirchir said that the government had “written” to a range of development agencies to outline the opportunity. “To basically tell them there’s an opportunity to build the airport through the Jomo Kenyatta International Airport, borrowing on its balance sheet,” he said.
Among the agencies approached are the Japan International Cooperation Agency, China Exim Bank, Germany’s KFW, the European Investment Bank, and the African Development Bank.
The planned expansion of Jomo Kenyatta International Airport (JKIA) will include a second runway and a new passenger terminal. Chirchir said once financing is in place, the government will invite bids for a contractor to carry out the work.
“Instead of bringing concessioning to build the airport, we build the airport that we can concession later,” he explained. The previous arrangement with Adani Group would have seen the company undertake the expansion in exchange for a 30-year lease to operate the airport.
That plan was abandoned last year after U.S. authorities indicted billionaire Gautam Adani and several company executives, accusing them of paying bribes to secure Indian power contracts and misleading American investors. The Adani Group has dismissed the charges as “baseless” and said it is cooperating with legal proceedings.
On the bond issue for road works, Chirchir said the government would securitise part of the fuel levy paid by motorists. The offering will be split evenly between a domestic listing and an offshore issue.
Ethiopia To Complete Africa’s Largest Airport By 2029
Elsewhere on the continent, the African Development Bank (AfDB) announced it will contribute $500 million towards a new airport in Ethiopia, which is expected to be the largest in Africa when completed in 2029.
State-owned Ethiopian Airlines has signed an agreement for the design of the $10 billion, four-runway facility to be built near Bishoftu, about 45 kilometres southeast of Addis Ababa. The airline has committed to covering 20% of the project’s cost, with the remainder to be financed by creditors.
“The bank has itself earmarked up to $500 million, subject to board approval, to anchor the funding of this transformational regional integration project,” AfDB said in a statement.
The bank added that it is spearheading efforts to secure $7.8 billion in funding for the facility, which is projected to handle up to 100 million passengers annually once operational.
Africa’s aviation industry has historically lagged behind its counterparts in Europe, North America, and Asia due to a mix of regulatory bottlenecks, underinvestment, and fragmented networks. While carriers in other markets benefit from modern fleets, broad route maps, and strong government subsidies, many African airlines operate with limited resources, older aircraft, and constrained schedules.
Recent infrastructure developments, including Nairobi’s planned expansion and Addis Ababa’s mega-airport, mark significant steps forward. Passenger volumes across Africa, however, remain well below those in the Asia-Pacific region, where a growing middle class has fuelled an aviation boom. Cargo operations on the continent remain concentrated in extractive industries, contrasting with Europe’s diversified trade and North America’s thriving e-commerce-driven freight sector.
Nevertheless, partnerships between African carriers and global airline alliances, as well as the African Union’s Single Air Transport Market initiative, are beginning to reshape the landscape. Advocates say sustained investment, regulatory harmonisation, and strategic cooperation will be essential if Africa is to close the gap with rival regions and fully realise its aviation potential.
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