Companies hoping to land the multi-billion-shilling contract to upgrade the Jomo Kenyatta International Airport will now have to meet some of the strictest financial and technical requirements ever issued in Kenya’s infrastructure sector. The government is demanding proof of massive liquidity, acceptance of delayed payments, and heavy tender securities as scrutiny intensifies over how the high-profile project is awarded.
Highlights
- Bidders must show access to at least Ksh100 billion in liquid assets
- Contractors will finance a large portion of the project upfront under deferred payments
- A Ksh2.5 billion tender security is required for eligibility
- Payment will be released in phases tied to project milestones
- Participation in site visits and technical meetings is mandatory
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Strict Financial Threshold Set for Bidders
Firms targeting the JKIA upgrade contract will be required to demonstrate exceptional financial strength, including proof of access to at least Ksh100 billion in liquid assets.
According to the tender documents issued under the Ministry of Roads, bidders must show they can independently finance early project stages without relying on advance government payments. This includes presenting evidence of liquid cash, assets free from debt, or confirmed credit facilities obtained within the last six months.
Deferred Payment Model Introduced
The project will be executed under a deferred payment arrangement, shifting significant financial risk to the winning contractor.
Under the proposed structure:
- 10% of the contract value will be paid upfront after a bank guarantee is issued
- 20% will be released once the project reaches 50% completion or after 18 months
- 25% will be paid upon official handover
- The remaining 45% will only be released after the defects liability period ends and final certification is granted
Bidders must formally accept these terms through a signed letter submitted with their tender documents.
Heavy Security and Compliance Requirements
In addition to financial capacity, companies must provide a tender security of Ksh2.5 billion, valid for 210 days from the opening date of bids.
They are also required to submit:
- Valid registration from the National Construction Authority
- A valid practising licence
- A tax compliance certificate from the Kenya Revenue Authority
- A CR12 document confirming company ownership and legal status
- A notarised power of attorney authorising the bid signatory
The ministry also insists that all bidders participate in mandatory pre-bid meetings and site visits, with a qualified engineer or architect required to attend and sign off.
Heightened Scrutiny Over JKIA Project
The upgrade of JKIA has been under intense public and political attention in recent months, with earlier proposals linked to the Adani Group sparking controversy before being dropped.
More recently, renewed speculation surrounding alleged involvement of foreign investors has triggered debate over transparency in procurement processes.
However, Transport Cabinet Secretary Davis Chirchir has dismissed such claims, insisting that the process remains open and that no unauthorised entity is involved in the tender.
Government Defends Ongoing Process
Speaking during a media briefing, the ministry maintained that all claims of predetermined contractors were false, reaffirming that no bidder has been awarded the contract.
Officials argue that the strict requirements are meant to ensure only financially capable firms handle the large-scale infrastructure upgrade, given its complexity and cost.
As competition builds for one of Kenya’s most strategic infrastructure projects, the JKIA upgrade is shaping up to be not just a construction deal but a test of financial power, transparency, and public trust.
