Weeks after the Nairobi High Court paused the proposed leasing of Jomo Kenyatta International Airport (JKIA) to Adani Group, the government has revealed a new plan to fund the airport’s upgrade.
On Monday, Prime Cabinet Secretary Musalia Mudavadi informed parliament that the government intends to use proceeds from a diaspora bond to finance the airport’s modernization, along with other key infrastructure projects.
Mudavadi explained that the government plans to raise additional funds by obtaining loans from Kenyans living abroad.
“We can tap into diaspora resources to partner with private sector investments and finance this infrastructure,” Mudavadi told lawmakers.
The issuance of diaspora bonds was revived this month after being delayed for over six months due to concerns about whether Kenyans abroad could effectively lend to the government.
The move is part of broader efforts to mobilize resources for national development.
Mudavadi also expressed regret over the country’s decision to neglect the rejuvenation of JKIA, noting that many airports in Africa had surpassed it in terms of upgrades.
“Today, if you land in Ghana, Togo, Addis Ababa, or Rwanda, their airports have overtaken JKIA,” he said.
His remarks come just three weeks after the High Court temporarily blocked the planned lease of JKIA to the Adani Group.
This legal action followed a petition by the Law Society of Kenya, seeking to halt the government’s leasing plan.
Earlier this year, the Indian conglomerate Adani Group submitted a proposal to take over operations at JKIA, citing plans to modernize the airport.
The government approved the proposal three months later, giving Adani the green light to begin renovation efforts under a public-private partnership.
However, the 30-year deal, which would allow Adani to operate and rehabilitate JKIA, faced significant opposition, particularly from aviation workers who protested against the move