President William Ruto has confirmed that the government has signed the contract for the expansion of Jomo Kenyatta International Airport (JKIA), revealing that the ambitious project will cost approximately Ksh150 billion and will not be financed through new taxes or additional public borrowing.

Speaking during an event to sign into law the sovereign wealth fund bill at State House, Nairobi, on Wednesday, July 8, 2026, Ruto said the government had adopted an innovative financing model to bridge the country’s infrastructure financing gap while protecting taxpayers from additional burdens.

“We just signed the contract for the Jomo Kenyatta International Airport. It’s going to be a Ksh150 billion project. We cannot build that project using our budget because it’s heavy,” the president said.

The head of state has explained that instead of relying on the exchequer or increasing Kenya’s debt, the government will use Ksh20 billion raised through the National Infrastructure Fund to attract private sector investment for the remainder of the project’s financing.

“So we will not borrow, and we will not add additional taxes. What is going to happen is that we’re going to use Ksh20 billion of the money we raised under our National Infrastructure Fund to crowd in the balance of the money from the private sector. That is how innovation works in the transformation of a nation,” Ruto added.

Essence of National Infrastructure Fund

According to the president, the National Infrastructure Fund is designed to bridge the gap between Kenya’s growing infrastructure needs and the limited public resources available to finance them. He said the fund will unlock capital from institutional investors, banks, fund managers and pension schemes, enabling the country to implement critical projects without straining the national budget.

Ruto has noted that financial institutions and investors are already expressing interest in financing the JKIA expansion through the new framework, describing the airport project as one of the flagship investments under the fund.

The president has explained that the National Infrastructure Fund will work alongside the Sovereign Wealth Fund to ensure that strategic national investments generate long-term value for future generations while accelerating economic growth.

The president has further maintained that the new financing approach marks a shift towards leveraging private capital to deliver major infrastructure projects, reducing dependence on conventional borrowing and shielding Kenyans from additional taxation as the government pursues its development agenda.