Kenya to fund airport expansion with pipeline IPO proceeds

Kenya will allocate 15–20 billion shillings ($155 million) from the proceeds of the Kenya Pipeline Company initial public offering (IPO) to expand Jomo Kenyatta International Airport (JKIA) in Nairobi, President William Ruto said on Monday.

Last week, the government announced it had raised 106.3 billion shillings by selling a 65% stake in Kenya Pipeline Company. The funds are expected to support major infrastructure projects across the country, including highways, railways, and ports, News.Az reports, citing Reuters.

Ruto said the airport expansion will be the first major project financed through the National Infrastructure Fund, a new funding model designed to channel investment into critical national projects.

Officials say Jomo Kenyatta International Airport, Kenya’s main aviation hub, is currently operating beyond its capacity and requires modernization to handle growing passenger traffic.

The government plans to use part of the IPO proceeds as seed funding for the airport’s expansion project.

News.Az 

By Aysel Mammadzada