In Nairobi, the government has announced plans to build Kenya’s new airport, as it moves to modernise the country’s aviation infrastructure. Transport Cabinet Secretary Davis Chirchir made the announcement on Tuesday 18th March at the signing of the Jomo Kenyatta International Airport (JKIA) Customer Service Charter in Nairobi.
Kenya’s new airport project key facts
- JKIA struggles with outdated infrastructure and inefficiencies. Temporary structures from a 2013 fire are still in use.
- The project will use KAA’s balance sheet for loans. DFIs, EXIM banks, and export credit agencies will support financing.
- The Cabinet has prioritised the project. Details on location, design, and timeline are pending.
The plan comes as concerns about Kenya’s current airport facilities continue to mount, particularly JKIA which has had obsolete infrastructure and operational inefficiencies for many years. Despite being East Africa’s busiest aviation hub, parts of JKIA are in disrepair.
Temporary structures like tents still cover some areas of the airport after a fire on 7th August 2013. These temporary structures leak during heavy rains and storms, passenger comfort and safety concerns.
Kenya’s new airport after previous flops
Kenya had previously started a big airport development project. Previous attempts to upgrade JKIA using a Public-Private Partnership (PPP) framework failed and the project was stuck.
The Greenfield Terminal project was the most prominent casualty after it was abandoned due to delays and legal disputes. KAA made a net loss of 474million for the financial year that ended June 2023 after the Greenfield Terminal was terminated and the authority wrote off 4.7billion shillings.
The government is optimistic about building a new airport despite these challenges. Chirchir said building a new airport is now on the Cabinet’s “active agenda” when he spoke at the signing ceremony.
We really need to up our game. After the previous PPP framework failed to upgrade JKIA we are looking at new ways to deliver a modern airport.
Funding the new airport project
According to the Transport CS the government will fund the new airport using KAA’s balance sheet as collateral, will have KAA take a direct loan similar to how Kenya Electricity Generating Company (KenGen) funds its power projects.
We are looking at policies that support investment projects that can stand on their own as businesses. That means more PPPs and less financing infrastructure from our national balance sheet.
DFIs including export credit agencies and EXIM banks will be key in the financing model. Chirchir said export credit financing may have terms like concession of airport operations to private companies. But he said the agreement will allow KAA to use its assets for sustainable development.
KAA’s assets grew from 73.3billion to 1.1trillion as of June 2023 mainly due to land revaluations. KAA’s creditworthiness will improve as it seeks funding for the new airport with this stronger asset base.
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A step towards modernising air travel in Kenya
The government’s wider strategy regarding the modernisation of Kenya’s aviation infrastructure and the development of a new airport is to expand the current position of Kenya as a regional transportation hub. In addition to the new airport projects, the government is also trying to improve the customer experience at JKIA.
On Tuesday, KAA and other partners signed the Customer Service Charter meant to enhance service delivery and manage work processes at the JKIA. Chirchir noted:
This Charter is meant to bring operational efficiency within JKIA by encouraging better coordination between different departments. We want to avoid the situation where various agencies are working in silos.
Unanswered questions and cautious optimism
While many in the aviation sector are celebrating the announcement, some analysts caution that the new airport’s success hinges on how effectively the government implements its management and funding strategies. A lot of Kenyans still have lingering worries about accountability, transparency, and how the project will be carried out.
On the brighter side, stakeholders are hopeful that this time around, KAA’s financial restructuring and renewed focus could pave the way for a successful project. If it comes to fruition, the new airport would significantly enhance Kenya’s capacity to handle increasing passenger and cargo traffic, boost travel, and strengthen the country’s connections with the global community.
As of now, there is less information available regarding the Kenya’s new airport’s location, design, or timeline. The government has assured that more details will be shared as the project moves forward in the planning process.
