Adani Group is expanding its investments in East Africa, with a new proposal to upgrade Kenya's Jomo Kenyatta International Airport (JKIA) in a bid to compete with Middle Eastern-based DP World in the region.

The group plans to build a second runway at JKIA, a project previously shelved after the then-Transport Minister dismissed it as lacking value for money for the Ksh56 billion infrastructure.

In May, Adani won a contract to operate four berths at the Port of Tanzania, part of the country's efforts to improve efficiency amid significant delays that have hindered port operations.

Adani has secured a 30-year concession to manage Dar es Salaam's Container Terminal 2, which includes four berths with an annual cargo handling capacity of 1 million Twenty-Foot Equivalent Units (TEUs).

Kenya's Cabinet recently approved the JKIA Medium Term Investment Plan, which covers the upgrade of the passenger terminal building, runway, taxiway, and apron.

President William Ruto on Sunday defended the decision to involve a private investor, citing the significant investment required and the current fiscal constraints that make private funding necessary.

The construction of a second terminal, known as the Green Field, was canceled in 2016. The contract had been awarded to the China National Aero-Technology International Engineering Corporation (CATIC).

The terminal would be capable of handling 20 million passengers annually, and the contractor was reported to have initiated foundation excavation and mobilised 90 percent of the required equipment.

However, there is a renewed need for a second runway at JKIA following recent incidents that have forced aircraft to divert to alternative airports, causing significant delays.

East African nations are increasingly handing over operational control of key infrastructure assets to the private sector to enhance efficiency and competitiveness in the global maritime industry.

Last year, DP World signed a 30-year concession agreement with the Tanzania Ports Authority (TPA) to operate and modernise part of the port, despite opposition from Tanzanian politicians.

Kenya is also exploring privatisation initiatives for multiple berths at the Mombasa and Lamu ports. Last year, the Kenya Ports Authority (KPA) invited prospective stakeholders to express interest in leasing port infrastructure through public-private partnerships.