Nairobi vies to host Asian Infrastructure Investment Bank regional office

Kenya is positioning Nairobi to host the Sub-Saharan Africa regional office of the Asian Infrastructure Investment Bank (AIIB), as the country seeks to deepen its partnership with the multilateral lender and unlock new sources of capital for infrastructure development across the continent.

Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Musalia Mudavadi made the proposal during talks with AIIB President Ms. Zou Jiayi in Nairobi, where he said Kenya was ready to become a model AIIB partner in Africa, with Nairobi serving as the bank’s gateway to the continent.

“Nairobi’s established role as a diplomatic, financial, and multilateral center makes it well placed to host an AIIB regional office,” Mudavadi said.

The discussions focused on financing and technical support for transformative infrastructure, including the Mau Summit–Malaba Expressway, expansion and modernisation of Jomo Kenyatta International Airport (JKIA), extensions of the Standard Gauge Railway, renewable energy, rural roads, water, and sanitation.

Mudavadi said the investments would support stronger connectivity, reduce the cost of doing business, and create jobs, linking Kenya’s infrastructure agenda to its wider economic transformation priorities.

The engagement also reviewed progress on major transport projects. Mudavadi said the Rironi–Gilgil section of the Rironi–Nakuru–Mau Summit corridor is expected to be completed by February 2027, with the remaining works targeted for completion by May 2027.

Kenya also highlighted the Mau Summit–Eldoret–Malaba Road, which is being advanced under a public-private partnership framework. AIIB is supporting the project’s pre-feasibility study, covering technical, economic, environmental, and financial assessments.

The corridor forms part of the Northern Corridor and is envisaged as a modern, climate-resilient transport route strengthening connectivity between Kenya, neighboring countries, and regional markets.

Beyond individual projects, Kenya is seeking to diversify its development partnerships and expand access to long-term financing.

The talks therefore included Kenya’s proposed US$500 million Panda Bond, with AIIB and the African Development Bank (AfDB) expected to play a critical role in opening access to China’s capital market.

The initiative draws on an established African precedent. AIIB and AfDB jointly supported Egypt’s first Sustainable Panda Bond, valued at RMB3.5 billion, demonstrating the potential for African sovereigns to tap China’s capital markets for sustainable infrastructure financing.

Kenya further sought AIIB technical support for the establishment and institutional development of the National Infrastructure Development Fund (NIDF), aimed at mobilising private capital for priority infrastructure.

The broader pipeline includes renewable energy, rural connectivity, water and sanitation, and further SGR extensions, reflecting Kenya’s effort to combine public financing, private investment, and international development capital to accelerate infrastructure delivery.

For Kenya, hosting an AIIB regional office would reinforce Nairobi’s established position as a diplomatic and financial center while creating a closer institutional link between Asian capital and Africa’s infrastructure needs.

The proposal reflects a broader ambition to make Kenya a model AIIB partner and use global capital not only to deliver infrastructure but also to expand businesses, improve connectivity, and create opportunities for the country’s young population.

 By Hassan Adan Ali by Hassan Adan Ali- (PCO)