Kenya seeks financing support for JKIA modernization and SGR extension

Kenya is stepping up efforts to deepen its strategic partnership with the Asian Infrastructure Investment Bank (AIIB) to secure expanded financing for key national infrastructure, connectivity, and sustainable development initiatives.

This comes following a meeting in between Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Musalia Mudavadi, and AIIB President Zou Jiayi who held discussions on September 10 in Nairobi.

In a statement, the office of the PCS said Mudavadi congratulated President Jiayi on assuming leadership of the bank and underscored Kenya’s commitment to leveraging its membership to accelerate economic growth while establishing the country as a primary gateway for AIIB’s expanding footprint in Africa.

Discussions focused on financing and technical support across transport infrastructure, aviation, renewable energy, water and sanitation, and rural connectivity.

“Kenya’s membership in AIIB is important and deliberate. We believe the Bank’s mandate aligns well with our national development priorities and our policy of diversifying partnerships with development partners that support sustainable socio-economic development,” Mudavadi said.

Kenya formally proposed hosting an AIIB Sub-Saharan Africa Office in Nairobi, positioning the capital as a regional operational hub to deepen AIIB’s engagement across the continent.

“Kenya would be honoured to host the AIIB Sub-Saharan Africa Office in Nairobi. This would facilitate the Bank’s engagement with African countries and strengthen cooperation in infrastructure, connectivity and sustainable development,” added the PCS.

Mudavadi noted that appreciation was expressed for AIIB’s support toward the Rironi–Mau Summit Private Partnership (PPP) Project, aimed at improving regional trade links and connectivity for landlocked neighbors.

The PCS further requested AIIB support for the modernization of Jomo Kenyatta International Airport (JKIA) PPP project highlighting its importance to the country’s position as a regional aviation, tourism, trade and investment hub.

He identified additional areas including renewable energy and last mile connectivity, rural roads linking counties with neighbouring countries, and extension of the Standard Gauge Railway (SGR) as areas where AIIB financing could have significant impact.

The meeting also reviewed Kenya’s plans to access a proposed US$500 million Panda Bond.

Supported by closer collaboration between AIIB and the National Treasury, this bond aims to diversify Kenya’s funding sources and strengthen financial resilience.

“The panda Bond will help Kenya diversify its sources for development financing while strengthening the county’s financial and economic partnership with China,” added the PCS.

Mudavadi at the same time briefed AIIB officials on legislative progress regarding the National Infrastructure Development Fund (NIDF) and the Sovereign Wealth Fund.

He requested AIIB’s technical expertise and capacity-building assistance to establish these institutions which are efficient, credible and internationally recognized and are capable of mobilizing resources for strategic national projects.