Kenya Signs $1.2B Deal With Chinese Firm for Nairobi Airport Expansion

Kenya has signed a Sh154.2 billion ($1.19 billion) design and build contract with China Road and Bridge Corporation to overhaul Jomo Kenyatta International Airport in Nairobi. The agreement, signed on June 23, 2026, initiates a 36-month modernization plan to expand the capacity of East Africa's busiest airport.

The project will deliver a new passenger terminal, upgrade existing landside and airside infrastructure, and improve operational support facilities. Under the new master plan, Nairobi's annual passenger capacity is expected to nearly triple to 22 million, up from the current 7.5 million. Aircraft arrival capacity is also projected to increase from 25 to 31 movements per hour. Principal Secretary for Aviation and Aerospace Development Teresia Mbaika and China Road and Bridge Corporation General Manager Yu Xiaodong formally signed the contract.

Roads and Transport Cabinet Secretary Davis Chirchir witnessed the signing, calling the project a major national infrastructure investment. Chirchir later shared on social media, "The JKIA Modernization Project is a strategic undertaking designed to expand airport capacity, enhance safety, improve passenger and cargo services, and strengthen Kenya's position as a leading regional aviation hub."

Despite the significant budget, this initial phase of the development excludes the construction of a second runway, a decision that has drawn debate from aviation analysts who argue a new runway is vital for long-term growth. The Kenya Airports Authority will implement the project using a hybrid funding structure. The state plans to borrow up to Sh100 billion and inject Sh50 billion in equity, backed by future airport revenues, with the Africa Finance Corporation and the Trade and Development Bank appointed to arrange the financing.

The signing comes after a turbulent period for Nairobi's hub expansion. In November 2024, President William Ruto cancelled a proposed $2 billion public-private partnership with India's Adani Group after its founder was indicted in the United States on bribery charges. That failed 30-year lease agreement would have included a second runway, but drew severe public backlash and labor strikes over its lack of transparency. The government subsequently completed a new airport master plan in February 2026 and fast-tracked the competitive bidding process over the last three months, attracting more than 40 companies to the pre-bid stage.

With the contract signed, the Ministry of Roads and Transport intends to begin immediate coordination with the Airport Operations Committee. Construction is scheduled to run through mid-2029, as Kenya races to protect Nairobi's hub status against major airport investments in neighboring Ethiopia and Rwanda.