Kenya courts World Bank for JKIA overhaul, SGR push, and a KSh70bn Lake Victoria Ring Road

Nairobi, Aug 27, 2025 — Kenya has opened talks with the World Bank on a fresh wave of transport megaprojects: redeveloping Jomo Kenyatta International Airport (JKIA), extending the Standard Gauge Railway (SGR) to the Ugandan border, and building a 180-km Lake Victoria Ring Road across five western counties. Transport CS Davis Chirchir met World Bank transport lead Binyam Reja on Tuesday to explore financing and PPP options. 

What’s on the table

• JKIA modernisation. Government is seeking development-bank funding for a multi-year upgrade including a new terminal and second runway after last year’s collapse of the Adani-led airport deal. Authorities have since pivoted to multilateral and bilateral lenders for roughly $2 billion in works. 

• SGR to Malaba. Kenya plans to extend the line from Naivasha through Kisumu to Malaba, targeting about $4 billion, with securitisation of the railway levy among options. The extension would connect with Uganda’s SGR, where financing arrangements and contractor onboarding advanced this year. 

• Lake Victoria Ring Road (≈KSh70 billion). A 180-km corridor across Busia, Siaya, Kisumu, Homa Bay and Migori with a 7-m carriageway, 2-m shoulders, plus urban footpaths and lined drains. Target start: the next financial year. 

Why this matters

Kenya is re-positioning as the region’s logistics hub. A modern JKIA raises passenger and cargo capacity, while SGR links to Uganda unlock a through-corridor from Mombasa → Kisumu → Malaba → Kampala, lowering freight costs and dwell times. Western Kenya’s ring road opens access to lakeside economies, tourism circuits, and cross-border trade. The World Bank has a long transport footprint in Kenya, aligning these talks with its prior support to airports, roads, and regulatory upgrades. 

The Adani reset and lessons learned

Kenya aborted the Adani airport concession amid legal and governance headwinds. Courts and the Executive halted the plan between late-2024 and 2025, prompting a pivot to development lenders and alternative structures. This reset follows an earlier JKIA saga: the Greenfield Terminal was cancelled in 2016 after costly false starts, underscoring procurement rigor and value-for-money risks that still loom over any new airport build. 

Money and models: how Kenya could fund it

• Sovereign + MDB blend. Mix World Bank and other DFIs with government capex for core civil works. Reuters reporting indicates outreach beyond the Bank to AfDB, EIB, JICA, KfW, and China Exim for the airport and rail pieces. 

• Levy securitisation. Extend the railway development levy model to raise hard-currency tranches for SGR links to Kisumu and Malaba. 

• PPP where bankable. Under the PPP Act 2021, projects can run competitive bids or structured privately-initiated proposals with disclosure safeguards. Aviation terminals and non-aeronautical revenue streams are classic PPP candidates; airside runways and rail permanent way often remain publicly financed. 

Execution risks to track

• Procurement discipline. Use standard PPP docs, competitive tension, and full disclosure to avoid repeat controversies. Kenya’s PPADA and PPP Act require transparency and equal opportunity; enforcement is the test. 

• Debt and affordability. Multibillion-dollar outlays must stay within fiscal anchors. Blended finance and phased scopes help manage cash flows. Recent policy signals show preference for concessional DFIs over opaque concessions. 

• Right-of-way and ESIA. SGR extensions demand land acquisition and resettlement frameworks; World Bank ESF and national environmental law will set the bar. (Background on Bank-backed transport operations in Kenya supports this route.) 

• Regional synchronisation. Uganda’s SGR timelines and funding close are critical so Kenya’s rail capex yields corridor-wide benefits on day one. 

Project-by-project outlook

• JKIA: Expect a staged programme: terminal capacity, airfield pavements, airside systems, and cargo. After Adani’s exit, government is courting DFIs and may retain operations while leasing specific assets later. Success depends on clear scopes and a credible delivery entity. 

• SGR Naivasha–Kisumu–Malaba: Financing structure is the swing variable. Levy-backed notes plus DFI debt is plausible; private ops under Kenya Railways oversight are under discussion. Coordination with Uganda’s Malaba–Kampala EPC will determine commissioning logic. 

• Lake Victoria Ring Road: KeNHA’s concept is mature on alignment and standards. Procurement packages, safeguards, and budget phasing will signal seriousness about a next-FY start. 

What to watch next

1. Terms of reference for transaction advisors and ESIA updates.

2. PPP procurement notices or DFI appraisal calendars.

3.  Budget and levy-securitisation steps. 

4. Uganda’s SGR financial close and ground-breaking windows.