Kenya's Jomo Kenyatta International Airport (JKIA) faces another setback in its expansion plans after President William Ruto cancelled a proposed upgrade by the controversial Adani Group.
This marks the second time East Africa's busiest aviation hub has seen plans for a second runway shelved. A similar initiative was abandoned in 2016 when an award for the project was cancelled.
President Ruto last week terminated the planned concession with the Adani Group following corruption charges against the Indian conglomerate in a New York court.
In his State of the Nation address to Parliament, Ruto directed procurement teams in the Ministries of Transport and Energy to halt ongoing Public-Private Partnership (PPP) procurement processes for JKIA's expansion and Ketraco's electricity transmission projects.
The decision, he said, was informed by information from investigative agencies and partner nations.
Kenya's previous bid to expand JKIA faltered in 2016 when the Greenfield Terminal project, awarded to China National Aero-Technology International Engineering Corporation (CATIC), was abruptly cancelled.
The terminal was designed to handle 20 million passengers annually and was seen as a major step in boosting Kenya's status as a regional aviation hub.
Despite progress, including the mobilisation of 90 percent of the required equipment, the project was shelved without explanation.
JKIA continues to operate with a single runway, restricting its ability to manage increasing passenger and cargo traffic. This limitation contrasts sharply with the advancements being made by neighbouring countries.
Ethiopia and Rwanda are emerging as serious contenders in the race to become East Africa's primary aviation hub.
Ethiopia has significantly expanded Addis Ababa's Bole International Airport, which serves as the home base for Ethiopian Airlines, Africa's largest carrier. Meanwhile, Rwanda is leveraging a strategic partnership with Qatar Airways to position Kigali as a regional aviation hub.
The Gulf carrier holds a 60 percent stake in Rwanda's Bugesera International Airport, scheduled to open in 2027 with an initial capacity of eight million passengers annually.
Qatar Airways is also utilising fifth freedom rights to operate flights from Kigali to multiple destinations without routing through Doha.
The stalled expansion of JKIA threatens Kenya's competitiveness in the regional aviation market, particularly as passenger numbers across East Africa continue to grow.
Analysts warn that without significant investment in infrastructure, JKIA risks falling behind its neighbours in serving as a key gateway for international and regional travel.