IATA Warns of Risks to Kenya’s Aviation Hub Status
The International Air Transport Association (IATA) has issued a warning about the potential risks to Kenya’s position as an aviation hub due to the increasing number of air taxes and levies imposed by the government. This comes after President William Ruto signed the Air Passenger Service Charge (Amendment) Bill, 2025, into law, which introduces new charges for both domestic and international travelers.
Kenya is known for having some of the highest air travel taxes in Africa, which could undermine its standing as a key aviation center. According to IATA’s analysis, the country collected $148 million (KSh 19.12 billion) in ticket tax revenue in 2024, placing it among the top 15 nations globally. The average tax per passenger was $21.1 (KSh 2,726).
IATA highlighted that these levies could have significant consequences on economic growth and connectivity. Despite concerns from the industry about the cumulative impact on travel demand, Kenya continues to implement new levies while participating in international initiatives aimed at increasing premium-class ticket tariffs.
Kenya is part of the Global Solidarity Levies Task Force, alongside countries such as France, Barbados, and Antigua & Barbuda. This group advocates for higher fees on premium-class travel to support development and climate initiatives.
Why Did IATA Issue the Warning?
IATA’s analysis warned that such fees can lead to unforeseen repercussions, including a decline in premium-class travel, increased costs for economy-class tickets, or even the discontinuation of certain routes. While premium travel may seem resistant to price changes, the organization pointed out that demand for such services can fluctuate based on economic conditions.
“Lower profits on premium-class travel can result in higher prices for economy-class tickets or reduced services,” IATA warned.
What Is the Air Passenger Service Charge (Amendment) Bill, 2025?
On Wednesday, October 15, 2025, President William Ruto signed the Air Passenger Service Charge (Amendment) Bill, 2025, into law. The bill was sponsored by Kikuyu Member of Parliament (MP) Kimani Ichung’wah, who also serves as the National Assembly’s majority leader.
According to the act, each person purchasing an airline ticket will pay KSh 600 for domestic travel and $50 (about KSh 6,500 at the current exchange rate) for international travel. The Cabinet Secretary has the authority to occasionally adjust the charges by publishing a notice in the Kenyan Gazette.
The amendment to the Air Passenger Service Charge Act (Cap. 475) allocates the proceeds from the air passenger service charge to the Kenya Meteorological Service Authority and the Tourism Fund. Additionally, the Kenya Civil Aviation Authority and the Kenya Airports Authority are also recipients of the levy.
Will Kenya Build a New Airport?
In other developments, the Kenyan government has unveiled plans to construct a new airport following the cancellation of the JKIA-Adani deal. President Ruto canceled the deal due to public pressure and allegations of corruption against the firm.
Transport Cabinet Secretary Davis Chirchir stated that the new airport will replace the Jomo Kenyatta International Airport (JKIA) and help reinforce Kenya’s position as a major aviation hub. This move is seen as a strategic step to ensure continued growth and competitiveness in the region.