State’s aviation revenue up 59pc on more flights
Passengers queue as their valuables are screened at the International Arrivals Terminal 1A at Jomo Kenyatta International Airport on November 7, 2023.
State revenues from aviation grew by 59 per cent in the year to June 2023, as airports handled more than 11 million passengers, with flights hitting a four-year high.
As the sector continued to post recovery from the impact of Covid-19, data from agencies in the segment show that their revenues shot up from Sh12.6 billion to Sh20 billion.
This came amid growth in cargo and passenger flights to near 2019 levels, just before the pandemic struck, triggering massive economic disruption.
Kenya Civil Aviation Authority (KCAA) data shows that flights in the 2022/23 financial year reached 335,464 from 300,234 a year earlier. Domestic flights constituted 202,278 while international flights totaled 76,824.
“As compared to the previous period, there was increased aircraft moving through the Kenyan airspace in the review period. Domestic aircraft registered increased movements by 2.3 per cent from 197,734 recorded in the FY 2021/22 to 202,278 recorded in the FY 2022/23,” KCAA notes.
It says over-flights –planes flying through the Kenyan airspace – increased by 37.77 per cent to 56,362 during the period.
With increased activity, KCAA notes, its revenues shot up by 46 per cent to Sh10.15 billion, attributable to increased air navigation services charges, and air passenger service fees.
“The increased activity through the Kenya airspace is attributed to improved performance of the aviation industry and recovery in economic activities from the interruptions brought about by the effects of Covid-19 pandemic,” KCAA adds.
Air navigation service charges rose from Sh4.2 billion in 2021/22 to Sh5.9 billion, while air passenger service charges generated Sh3.28 billion (a 73 per cent rise).
KCAA charges air navigation services charges on aircraft movements, and air passenger service charges on passenger movements.
“The number of passengers handled at Kenya airports increased by 24.4 per cent from the 8.89 million recorded in the FY 2021/22 to reach 11.06 million recorded in the FY 2022/23,” KCAA said.
Kenya Revenue Authority (KRA) earnings from aviation revenue and air passenger service charge commissions, on the other hand, increased to Sh393.5 million in the review period from Sh247.4 million a year earlier.
The commissions constitute two per cent of the revenues KRA collects on behalf of other agencies, meaning that total revenues from the two charges were Sh20 billion, from Sh12.6 billion in the prior year.
KRA attributed the growth to a surge of activities in the sector during the first fiscal year that did not have direct Covid-19 impacts, such as economic lockdowns and cessation of travels.
