Kenya uses pipeline sale proceeds for airport upgrade

The government of Kenya is set to allocate up to 20 billion shillings from the proceeds of a recent state-owned enterprise privatization to expand its primary international gateway. President William Ruto announced on Monday that between 15 and 20 billion shillings (approximately $155 million) from the Kenya Pipeline Company initial public offering (IPO) will be used to modernize Jomo Kenyatta International Airport in Nairobi.

The funding follows the government's sale of a 65% stake in the pipeline company, which generated 106.3 billion shillings. These funds have been directed to the National Infrastructure Fund, a vehicle designed to finance major public works including highways, railways, and maritime ports. The airport expansion marks the first significant project to receive capital under this new financing model.

"Between 15 and 20 billion shillings from the National Infrastructure Fund, from the proceeds of the Kenya pipeline IPO will go to financing the seed money for the expansion of Jomo Kenyatta International Airport."

National authorities have previously indicated that the airport is currently operating beyond its intended capacity and requires significant upgrades to maintain efficiency. The modernization project aims to address these capacity constraints and improve infrastructure at the regional hub. The initial 15 to 20 billion shillings will serve as seed capital for the project's development.