The ambitious plans by the Kenyan government to upgrade and improve the Jomo Kenyatta International Airport are still on course. According to the Roads and Transport CS, Davis Chirchir, the government expects to break ground the Jomo Kenyatta International Airport Expansion before the end of the calendar year.
The announcement comes after the government decided to cancel the JKIA expansion contract with Adani Group. This cancellation was due to controversial clauses that were present in the contract and had been shrouded in secrecy.
Project Factsheet
Total cost: The proposed Jomo Kenyatta International Airport Expansion is estimated to cost approximately $2 billion (KSh 264 billion).
Funding model: The government of Kenya wants to utilize the Public-Private Partnerships (PPPs) due to fiscal constraints.
Potential financiers: potential financiers of the project include European Investment Bank, KfW, and French Development Bank. Also, Japan International Cooperation Agency (JICA), Abu Dhabi Fund for Development, and China Exim Bank could fund the project.
Timeline:
- Groundbreaking: The government of Kenya intends to break ground for the Jomo Kenyatta International Airport Expansion Project before the end of 2025.
- Completion of the new terminal: work on the new state-of-the-art terminal is expected to start later in 2025. It is expected to be completed by the end of the 2025/2026 financial year.
- Second runway construction: according to an earlier appraisal report for the second runway, it is projected a construction period of 30 months.
President Ruto Cancels the Expansion Project with Adani
“In furtherance of principles that are enshrined in Article 10 of the Constitution which emphasize on transparency and accountability, and based on the new information that is provided by investigative agencies and partner nations, I hereby therefore direct the cancellation of the ongoing procurement process for the JKIA-Adani airport deal. This directive will also go to the recently concluded Ketraco deal,” President Ruto made a statement on November 21, 2024.
The cancellation of the deal for the airport allowed the Ministry of Transport to look for other alternative financial solutions for funding the capital-intensive project.
Also read: Kenya’s New Airport Funding to be Provided by KAA Following Adani’s Fallout
Potential Financiers of the Project
The government has been engaging in talks with different development financial institutions. These funding institutions include the European Investment Bank, KfW, and the French Development Bank. Additionally, the government has been in talks with the Japan International Cooperation Agency (JICA), Abu Dhabi Fund for Development, and China Exim Bank. As for now, the government is still waiting for feedback on how to finance the JKIA Expansion Project using the airport’s balance sheet.
“We are really conscious about this. Keep in mind that our airport got burnt and is on a tent. Therefore, we are really conscious on this project. Also, we are working tirelessly to see that on a very tight timeline whether we can break ground before the end of this year,” said CS Chirchir.
Also read: Proposed Adani’s JKIA Terminal Designs
Significance of the Project
Once the project is completed, the Kenyan government argues that it will attract more airlines into the Kenyan capital. Therefore, this will make it easier for the national carrier to forge. This highlights the call for the government to intervene to curb capacity dumping through policy would only negatively affect Kenya.
Also read: $2 Billion Massive New Nairobi Airport to be Constructed in Kenya as Pressure Mounts on JKIA
