The government of Kenya plans to allocate part of the proceeds from the initial public offering of Kenya Pipeline Company to support the expansion of the country’s main aviation hub, Jomo Kenyatta International Airport in Nairobi, President William Ruto said, as reported by Reuters.
The government is expected to commit between 15 billion and 20 billion Kenyan shillings (about $116 million to $155 million) from the IPO proceeds as seed capital for the airport expansion. The funds will be channeled through the National Infrastructure Fund, a financing vehicle created to support large-scale infrastructure development across the country.
Kenya recently raised about 106.3 billion shillings by selling a 65 percent stake in Kenya Pipeline Company, with proceeds earmarked for major infrastructure projects including roads, railways, ports, and aviation upgrades, MarketScreener reported.
Officials say the expansion of Jomo Kenyatta International Airport is necessary as the facility, Kenya’s busiest international gateway is operating close to capacity and requires modernization to accommodate rising passenger and cargo traffic while strengthening Nairobi’s role as a leading regional aviation hub.
Image Credit: www.theonlinekenyan.com
