Kenya launches tender for new JKIA terminal after US$2B Adani deal collapse

KENYA – Kenya has launched a tender for a new passenger terminal at Jomo Kenyatta International Airport, months after canceling a US$2 billion deal with India’s Adani Group.

The project aims to handle an additional 10 million passengers annually, addressing severe congestion at Nairobi’s main gateway which already handles 9 million passengers, well above its 7.5 million design capacity.

From Collapsed Deal to Fresh Start

The tender follows President William Ruto’s November 2024 cancellation of a proposed 30-year lease with Adani Group after its founder faced indictment in the United States.

Transport Minister Davis Chirchir confirmed the airport was never for sale, emphasizing the new procurement process would follow strict legal protocols.

The abandoned deal would have added a second runway and upgraded terminals in exchange for operational control.

Urgent Expansion Needed

JKIA’s congestion has reached critical levels.

Passenger numbers have exceeded design capacity for years, creating bottlenecks across runway systems, terminals, and access roads.

The new facility will include upgraded runways, rapid-exit taxiways, and digitalized passenger processing systems.

Chirchir assured the project would be delivered within three years, with immediate optimization upgrades boosting current capacity to 12 million passengers within 15 months.

Airport City Vision Takes Shape

Beyond aviation infrastructure, Kenya plans an ambitious Airport City and Special Economic Zone around JKIA.

The development will feature hotels, business parks, conference facilities, and logistics hubs targeting pharmaceuticals, e-commerce, and light manufacturing.

The integrated hub aims to transform JKIA into an aviation-led economic engine, generating employment and attracting investment while strengthening Kenya’s position as East Africa’s premier gateway.

Regional Competition Heats Up

The expansion comes as neighboring Ethiopia constructs Africa’s largest airport in Bishoftu, a $12.5 billion project slated for 2030 with 110 million passenger capacity.

Ethiopian Airlines, the continent’s largest carrier, will finance 30% of the project, positioning Addis Ababa as a major continental transit hub.

Kenya’s modernization push aims to maintain competitive edge as East African aviation rivalry intensifies.

Economic Impact and Job Creation

The master plan projects passenger numbers reaching 22 million by 2045, with cargo volumes more than doubling to 860,000 tons.

Chirchir emphasized that infrastructure development must be matched by investment in technical skills, with the aviation sector already growing 6.3% in 2024.

The expansion promises thousands of construction and permanent jobs across the aviation value chain, from engineers to hospitality workers serving transit passengers.

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