Kenya will allocate between 15 billion and 20 billion shillings (up to $155 million) from the initial public offering of shares in Kenya Pipeline Company to expand the country’s main airport in Nairobi, President William Ruto said on Monday, according to Reuters.
The government announced last week that it raised 106.3 billion shillings by selling a 65% stake in Kenya Pipeline Company.
Authorities said the proceeds would support major infrastructure projects including highways, railways and ports.
Officials have also noted that Jomo Kenyatta International Airport is operating beyond its capacity and needs modernization.
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Ruto said the airport expansion will be the first major project funded through a new financing approach under the National Infrastructure Fund.
“The expansion of the Jomo Kenyatta International Airport will be the first major project financed through this new model of financing under the National Infrastructure Fund,” Ruto said.
“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.”
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Image Credit: China Daily
