Kenya, China Road and Bridge Corporation Sign $1.2 Billion JKIA Expansion Deal

Kenya has officially signed a landmark $1.2 billion contract with China Road and Bridge Corporation (CRBC) to expand and modernize Jomo Kenyatta International Airport (JKIA) in Nairobi, marking the conclusion of a multi-year saga that saw the project shift hands between an Indian conglomerate, a Chinese state-owned consortium, and a politically controversial businessman before finally reaching the signing table.

The Deal That Was Signed

Kenya's government signed a 154.2 billion Kenyan shilling ($1.2 billion) agreement with China Road and Bridge Corporation to expand Jomo Kenyatta International Airport, Transport Minister Davis Chirchir confirmed. The agreement was formally signed by Aviation Principal Secretary Teresia Mbaika and CRBC General Manager Yu Xiaodong, in the presence of Roads and Transport Cabinet Secretary Davis Chirchir and Kenya Airports Authority Managing Director Moses Wekesa.

What the Expansion Will Deliver

The project is designed to dramatically scale up one of East Africa's busiest aviation hubs. Under the project, the capacity of the existing terminal will be expanded from 7.5 million passengers annually to 12 million, while a new terminal will add capacity for an additional 10 million passengers — bringing the airport's total annual passenger handling capacity to 22 million. The project covers rehabilitation and expansion of existing airport infrastructure as well as construction of new facilities, transforming JKIA into a regional aviation hub, with the new terminal expected to take 36 months to build and rehabilitation of the airfield projected to take 15 months.

How the Financing Will Work

Kenya is structuring the funding through a mix of government contribution and substantial borrowing. Under the plan, the government would contribute about 46 billion shillings, while approximately 107 billion shillings would be raised through borrowing, with 70% of the total funding expected to come from debt financing. Transport CS Davis Chirchir said the government has engaged the Trade Development Bank and the Africa Finance Corporation as lead arrangers, stating, "We need to raise 30 per cent equity and go to lenders for 70 per cent debt".

Kenya is also tapping a domestic infrastructure fund to ease borrowing costs. To eliminate the capital constraints that previously stalled the project, Kenya established the National Infrastructure Fund, capitalised using revenues from the privatisation of the Kenya Pipeline Company. Chirchir noted, "We are looking at funds from the NIF as part of the funding of this project... if it contributes about five to nine per cent, it could help reduce the cost of debt".

A Project With a Turbulent History

This contract caps off years of controversy and false starts for JKIA's long-planned expansion. The tender was originally awarded to India's Adani Group in 2024 for an estimated $1.85 billion, but was cancelled after Kenyan labour unions objected to contractual terms they said were unfavourable to the national interest, and following a United States corruption probe into the company. The project was re-advertised through an open international competitive bidding process launched on March 3, 2026, which closed on May 14.

The road to this signing also involved a politically charged controversy over a separate, far larger reported figure. Reports had emerged that a consortium led by CCCC had secured a contract reportedly worth $2.9 billion, with claims that IMC Construction Kenya — a company linked to controversial Zimbabwean businessman Wicknell Chivayo — was part of the consortium, sparking fresh political debate in Kenya. Kenya's government firmly denied both the inflated contract value and Chivayo's company's involvement, with Chirchir stating that "the company referred to in those reports did not participate in this procurement process as a bidder and has no role, involvement or association whatsoever with this project".

Why This Matters for Kenya's Regional Standing

The expansion arrives as Kenya races to keep pace with ambitious aviation investments across East Africa. Rwanda is building the new Bugesera International Airport targeting 14 million passengers annually, with a seven-million-passenger first phase due to open in 2027; Tanzania has increased capacity at Julius Nyerere International Airport in Dar es Salaam to eight million passengers; and Ethiopia broke ground in January on a new airport at Bishoftu designed to handle 110 million travellers a year. Against that backdrop, securing JKIA's expansion was widely seen as essential for Kenya to defend its position as the region's leading aviation and logistics hub.

For ongoing, authoritative coverage of major African infrastructure financing and development projects, the African Development Bank remains a key resource for tracking how large-scale projects like this one are structured and financed across the continent.

What Happens Next

With the contract now formally signed and President William Ruto having previously indicated construction would begin in July, attention turns to whether CRBC can deliver the project on the announced 36-month timeline for the new terminal. Given how many times this project has stalled, restarted, and changed hands over the past two years, stakeholders across Kenya's aviation and infrastructure sectors will likely watch closely for any signs of delay as work finally gets underway.