The Kenyan government has decided to utilize the the balance sheet for Kenya Airports Authority (KAA) to seek Kenya’s New Airport Funding.
This major decision comes in after Kenya’s deal with Adani did not materialise, with the Cabinet Secretary of Transport Davis Chirchir emphasizing the point that economic infrastructure should not come at the cost of the government’s investment in social development initiatives like education and health.
Project Factsheet
Location: Nairobi
Significance: To expand on the general capacity of JKIA, modernize existing facilities, and improve air traffic efficiency.
Previous development plan
- Proposed partnership: The Kenyan government had planned to partner with India’s Adani Group
- Management agreement: Adani Group was to operate JKIA for 30 years
- Investment plan: The project was expected to attract billions in investment to modernize Kenya’s largest airport
Also read: $2 Billion Massive New Nairobi Airport to be Constructed in Kenya as Pressure Mounts on JKIA
Kenya’s New Airport Funding to be Discussed at the Cabinet
The cabinet secretary spoke at the event of the signing of the JKIA Customer Service Charter at Jomo Kenyatta International Airport (JKIA) in Kenya’s capital Nairobi yesterday. Furthermore, he stated that the plan would be submitted to the Cabinet. The cabinet would conduct a framework on how the leveraging should be conducted will be later communicate the outcome.
As for now, KAA the state agency in charge of overseeing all the airports in the country, is still recovering from the losses that came after the termination of the 2017 JKIA Greenfield Terminal project. This left the agency with a debt amounting to more than Ksh4 billion.
“We will be looking at the balance sheet of KAA, working with the various development finance instructions (DFIs). Be it Export-Import Bank (Exim) or Export Credit Bank,” stated the cabinet secretary.
JKIA to Leverage its Balance to Finance the Project
“ The airport is expected to be able to leverage its balance sheet in order to develop a new airport. This is to ensure that it is not competing with the other social infrastructure that we need to do in the sector of education and health and food security.” The CS stated that the Kenyan government will be communicating soon on the approved framework of this plan so as to leverage KAA’s balance sheet.
Also read: Proposed Adani’s JKIA Terminal Designs
“ The importance of this is that JKIA can now procure successfully a new terminal. This will enhance its overall capacity and continue its hub status with the region of East Africa.” This was stated the acting chief executive of KAA, Henry Ogoye, as documented in the Auditor General report.
Also read: Adani Airport Holdings Proposes Modernization of Kenya’s JKIA Amid Controversy and Optimism
