Kenya has awarded a $2.9 billion (Kes 374b) contract to China Communications Construction Co. (CCCC) to upgrade and expand Jomo Kenyatta International Airport (JKIA), according to a Bloomberg report citing people familiar with the matter.

The state-owned Chinese firm secured the engineering, procurement and construction (EPC) deal nearly two years after Kenya canceled a controversial airport concession agreement with India’s Adani Group. The sources, who spoke on condition of anonymity, said construction is expected to begin this month.

The project strengthens China’s role in Kenya’s infrastructure sector, where CCCC is already involved in major developments including the Standard Gauge Railway, a 60,000-seat stadium, a toll road and a convention center.

Funding for the airport expansion will come partly from proceeds of privatization invested in Kenya’s newly created National Infrastructure Fund. The government will also raise financing through commercial loans backed by securitizing air-passenger service charges.

The airport upgrade comes after the collapse of an unsolicited $2.6 billion proposal by Indian billionaire Gautam Adani to operate JKIA for 30 years. The plan triggered public protests and an aviation workers’ strike in 2024, prompting the government to abandon the deal.

Kenya is under pressure to modernize JKIA as regional rivals intensify competition in the aviation sector. Ethiopia is planning a new $12.5 billion airport near Addis Ababa, while Rwanda is building a new international airport in partnership with Qatar Airways.