50 Years To Make Ksh200 Billion To Expand JKIA- MPs Told
KAA currently generates a net revenue of Ksh4 billion each year

It could take up to five decades to raise the Ksh200 billion ($1.85 million) that Indian firm Adani Airport Holdings Ltd is seeking to inject into the expansion of the Jomo Kenyatta International Airport (JKIA) in Nairobi.
This is an admission the Kenya Airports Authority (KAA) made to Members of Parliament (MP) on Tuesday, October 15 during a session with the National Assembly's Committee on Implementation, where Transport Principal Secretary Mohamed Daghar opened up on the financial shortfalls facing the country's largest airport.
According to Daghar, KAA currently generates a net revenue of Ksh4 billion each year, with the PS estimating that the airport regulator would take 50 years to improve facilities at JKIA.
“Adani is seeking to develop JKIA for $1.85 million over a 30-year concession. We have no fiscal space to invest this kind of money. KAA makes net revenue of Ksh4 billion annually yet we need Sh200 billion to develop infrastructure at the JKIA,” Daghar told MPs.
Transport Principal Secretary Mohamed Daghar speaking during a past Kenya Airways event. /KENYA AIRWAYS
“JKIA was designed to handle 7.6 million passengers annually but we are currently handling 8.2 million. It will take KAA 50 years to upgrade infrastructure at the airport.”
PS Daghar told the committee chaired by Budalangi MP Raphael Wanjala that the government is 10 years late in upgrading facilities at the JKIA, a finding he noted was due to the airport suffering a fire incident in 2013, as well as the proposed construction of the Greenfield Terminal which was terminated, which has exposed JKIA to congestion.
“Adani Airports Holdings Limited will invest money over some time without the government paying anything,” he spoke highly of the benefits of the Adani-JKIA deal, adding “Adani will also pay concession fees to the contracting authority (KAA) over the 30 years even as they recoup their investments.”
Daghar was responding to questions filed by Embakasi West MP Mark Mwenje who demanded to know whether the Adani Airports Holding deal favours national airline Kenya Airways (KQ) or if it will open JKIA to airlines from India and Asia to face off against the national carrier.
The PS appeared before the committee alongside Kenya Airways Chief Executive Alan Kilavuka and KAA Acting Managing Director Henry Ogoye to shed light on the status of implementation of the House resolution on the nationalisation of KQ.
Kenya Airways, KAA, JKIA Merger?
Meanwhile, MPs are pushing for the creation of an Aviation Holding Company (AHC) to oversee a major restructuring of Kenya's aviation sector, a company which would manage key entities, including KQ, the KAA, JKIA and an Aviation Services College.
In a forthcoming report to be presented in the house, the National Assembly Transport, Public Works and Housing Committee concluded that the current Project Implemented Investment Plan (PIIP) is inadequate for revitalising the aviation industry.
The committee is also advocating for the nationalisation of Kenya Airways (KQ) as part of efforts to reposition Nairobi as a leading aviation hub in Africa and to safeguard the nation's aviation assets, with committee chair David Pkosing, the MP for Pokot South, noting the troubling financial state of KQ, which carries a debt of Ksh75 billion, backed by government guarantees.
"The Committee noted that taking into account KQ's current financial status and the current lack of competitiveness of Kenya's aviation industry, the Government and the people of Kenya stand to lose the most in the event the trend is left to continue," Pkosing stated in the report.
Subsidiaries
The proposed AHC would comprise four subsidiaries: JKIA Company, which would manage the international airport, including ground handling and catering services; KAA, responsible for overseeing all airports and airstrips; KQ, serving as the national flag carrier; and the Aviation Services College, centralising aviation training.
Kenya Airways planes at Jomo Kenyatta International Airport (JKIA) in Nairobi. /FILE
"Under its new mandate, KAA shall maintain at least one serviceable airstrip in each county for purposes of security, health, and other emergencies," the committee recommended.
To enhance operational efficiency and reduce bureaucracy, the committee emphasised that the nationalisation of KQ should be accompanied by amendments to key laws, including the Public Finance Management Act and the Public Procurement and Asset Disposal Act. These changes would grant the new AHC and its subsidiaries greater financial autonomy and flexibility.
Additionally, the committee recommended tax concessions and exemptions for the AHC, such as zero-rating supplies, customs duty exemptions for aircraft parts, and waivers on excise duties for aviation fuel, incentives which would be geared at improving the financial sustainability of the AHC and KQ, enabling them to compete more effectively within the region.