KAA to Fund New Airport Following Adani Fallout

Nairobi, Kenya - In a strategic move to bolster Kenya's aviation infrastructure, the government is set to leverage the Kenya Airports Authority's (KAA) balance sheet to secure funding for the construction of a new airport. This decision, revealed during the signing of the Jomo Kenyatta International Airport (JKIA) Customer Service Charter on March 17, 2025, signals a shift in approach following the collapse of the Adani deal. Transport Cabinet Secretary Davis Chirchir emphasized the importance of prioritizing economic infrastructure without compromising investments in social programs like education and healthcare.
The plan, which will be submitted to the Cabinet for approval, outlines a framework for leveraging KAA's assets, which are valued at over Sh1 trillion. KAA is still recovering from losses incurred after the termination of the JKIA Greenfield Terminal project in 2017, which left the authority with a debt exceeding Sh4 billion.
"We will be looking at KAA’s balance sheet, working with various development finance institutions (DFIs), be it Export-Import Bank (Exim) or Export Credit Bank," stated CS Chirchir. He further explained that the new airport project should be self-sustaining, drawing revenue and servicing its debt without competing with essential social infrastructure.
The signing ceremony of the JKIA Customer Service Charter was attended by key government officials, including Interior CS Kipchumba Murkomen, Tourism CS Rebecca Miano, Principal Secretary in the State Department for Transport Mohammed Daghar, and Inspector General of Police Douglas Kanja. The charter aims to improve customer experience at JKIA, with initiatives such as a modernized baggage handling system, improved stormwater drainage, enhanced air conditioning, and clear signage already in effect, as detailed in the Cabinet dispatch on February 11, 2025.
KAA acting chief executive Henry Ogoye noted that a new terminal would enhance JKIA's capacity and maintain its status as a leading aviation hub in East Africa. The Auditor General report highlights KAA's assets at Sh1.1 trillion as of June 2023, a significant increase from Sh73.3 billion in June 2022, mainly due to land revaluation.
The Customer Service Charter involves collaboration between various agencies, including the Directorate of Immigration Services, Kenya Revenue Authority Customs, and the Kenya Airports Police Unit. Tourism CS Rebecca Miano emphasized the charter's role in achieving the target of five million visitors by 2027, a substantial increase from the current 2.4 million.