The planned expansion of Jomo Kenyatta International Airport (JKIA) will be the first project financed through Kenya’s newly established National Infrastructure Fund, marking a new approach to funding major development projects.
President William Ruto announced that the airport expansion will be structured with about Sh20 billion in equity from the new fund together with investment from local institutional investors. The announcement came after the President signed the National Infrastructure Fund Bill into law at State House in Nairobi.
The project signals a shift in how the government intends to finance large infrastructure developments. Instead of relying heavily on foreign loans, the new model aims to mobilise local capital and long-term savings to support strategic national projects.
The move also comes after the JKIA expansion had earlier been awarded to India’s Adani Group under a public-private partnership arrangement. That proposal attracted public debate when it became public in 2024, with concerns raised about transparency, procurement processes and long-term control of a key national asset.
Under the new funding model, the government expects the National Infrastructure Fund to attract investments from pension funds, collective investment schemes, sovereign wealth funds and climate finance sources. The aim is to reduce dependence on external borrowing, particularly in foreign currencies.
According to the government, infrastructure projects funded through foreign loans often face exchange rate risks, especially when revenues are generated in Kenya shillings while repayments are made in foreign currencies.
Through the new framework, the government hopes to channel domestic savings into long-term infrastructure investments. The fund is expected to leverage its capital at least 12 times, with an initial goal of mobilising up to Sh1.2 trillion and potentially reaching Sh5 trillion over the next decade.
The law also establishes governance structures to oversee the fund, including a governing council, an independent professional board and parliamentary oversight of investment policies. With the JKIA expansion set to be the first project under the new system, the initiative will serve as an early test of the government’s strategy to finance major infrastructure projects using locally mobilized capital.
