Kenya has appointed the Trade and Development Bank (TDB) and the Africa Finance Corporation (AFC) to arrange financing for a $1.2 billion modernization of Jomo Kenyatta International Airport, a project expected to strengthen the country’s position as East Africa’s leading aviation gateway.

The country’s transport minister Davis Chirchir said the financing structure will leverage airport-generated revenues while attracting development finance institutions and commercial lenders to support the project.

The expansion comes after Kenya suspended plans involving the Adani Airport Holdings in 2024, following controversy surrounding its proposed management and investment agreement for the airport.

Capacity to triple as passenger demand rises

The ambitious project aims to increase JKIA’s annual passenger handling capacity to 22 million travelers from the current 7.5 million, reflecting rising demand for air travel across East Africa.

Planned works include the rehabilitation of existing runways, taxiways, aprons and airport facilities, alongside the construction of a new passenger terminal. Once completed, the upgrade is expected to significantly improve operational efficiency, passenger experience and cargo-handling capabilities.

Located approximately 18 kilometers southeast of Nairobi’s city center, JKIA serves as Kenya’s primary international gateway, connecting passengers and businesses to more than 50 countries worldwide. The airport remains a strategic asset supporting tourism, trade and regional logistics.

Development finance institutions step in

The project carries a maximum cost estimate of KSh154.2 billion ($1.19 billion) and is expected to be completed within three years. According to the government, an international competitive bidding process has already been conducted for implementation.

TDB, established in 1985, has become one of Africa’s leading regional development finance institutions, supporting trade, infrastructure and economic integration across Eastern and Southern Africa.

Headquartered in Lagos, AFC has emerged as a major infrastructure investor across the continent, financing projects in transport, power, telecommunications, natural resources and industrial development.

Strategic boost for Kenya’s economy

The JKIA expansion aligns with Kenya’s broader strategy to strengthen aviation infrastructure, increase tourism arrivals and enhance its role as a regional business and logistics hub.

For investors and policymakers, the project signals renewed momentum in African infrastructure financing as governments increasingly partner with regional financial institutions to close critical funding gaps.

As air travel demand accelerates across the continent, the upgraded JKIA is expected to become one of Africa’s most important aviation gateways, supporting long-term economic growth, trade connectivity and investment flows.