Kenya Proposes Higher Air Passenger Charges To Fund Tourism, Aviation

(KENYA) Lawmakers are moving to finalize the Air Passenger Service Charge (Amendment Bill, 2025), a measure that would raise ticket charges on both international and domestic flights and redirect the proceeds to Kenya’s core travel and safety institutions. As of August 27, 2025, the Bill has cleared its Second Reading in the National Assembly and sits at the Committee of the Whole House. If approved and assented to, the higher charges could take effect within weeks, shaping how the state funds tourism marketing, airport upgrades, aviation safety, and weather services that protect flights and communities.

The proposal would lift the international Air Passenger Service Charge from $40 to $50 per ticket, a 25% increase, and raise the domestic charge from Ksh500 to Ksh600 per ticket, a 20% increase. Supporters say the increases are overdue after a 13-year freeze and will provide more stable funding for agencies that keep planes, airports, and passengers safe. The Cabinet Secretary would keep authority to adjust the charge by public notice in the Gazette, allowing future tweaks based on sector needs and performance.

Policy changes and beneficiaries

Under the Amendment Bill, proceeds from the Air Passenger Service Charge would be shared among four bodies:

• Kenya Airports Authority (KAA)
• Kenya Civil Aviation Authority (KCAA)
• A consolidated Tourism Fund (absorbing the previous Tourism Promotion Fund)
• Kenya Meteorological Service Authority (KMSA)

Lawmakers say consolidating tourism financing into a single Tourism Fund will reduce duplication, speed up spending on strategy and marketing, and make results easier to track. The Tourism Fund replaces the Tourism Promotion Fund, which previously received 20% of revenues.

A new beneficiary, the KMSA, would receive a dedicated share for the first time. Lawmakers connected this to aviation safety and climate risks: accurate, timely weather reports protect flights from dangerous storms, help pilots avoid turbulence, and support disaster preparedness. The Amendment Bill ties airline passenger charges to reliable forecasting and early warnings that serve both the aviation sector and the public.

The government also notes a regional trend: air travel fees across East Africa are rising. Tanzania recently introduced a $45 tax on international air tickets, and Kenya’s planned increases align it with neighbours seeking higher aviation revenues to fund infrastructure and regulation. Officials argue Kenya needs stronger airports and safer skies to stay competitive for airlines, tourists, and trade.

Impact across travel and industry

Passengers:
– The change increases a ticket component applied to all routes once the law takes effect.
– For an inbound family of four, the international fee rise adds $40 to the final bill.
– Domestic travellers will pay an extra Ksh100 per person.
– While minor compared to total fares, these increases come when many households are price-sensitive.

Tourism:
– A larger, centralized Tourism Fund aims to repay travellers via stronger promotion, better facilities, and smoother visitor experiences.
– If funds are channelled quickly to priority campaigns, airports, and routes, Kenya could attract more long-haul and higher-spending visitors.
– Airlines and hotels often respond to earmarked funds with joint promotions, which can soften the impact of higher fees (analysis by VisaVerge.com).

Aviation:
– Sustained funding for KAA and KCAA supports runways, power stability, efficient air traffic control, and safety oversight that meet global standards.
– Lawmakers warn that as more agencies share the pot, KAA must not be left short; the Committee stage is expected to fine-tune allocations to protect airport modernization plans.

Meteorology:
– Predictable funding for KMSA could help maintain radar, weather stations, and data systems feeding forecasts to pilots and controllers.
– Better weather products can reduce delays, lower fuel burn through improved routing, and avert costly diversions — benefits for airlines and travellers alike.

Stakeholder positions:
– Hon. Kimani Ichung’wah (Leader of the Majority Party): Emphasized eliminating duplication and securing long-term funding for aviation and tourism.
– Hon. Owen Baya (Deputy Majority Leader): Argued direct allocations can strengthen safety and destination marketing.
– Hon. Robert Mbui: Warned against spreading funds in a way that undermines airport management.
– Hon. Jared Okello: Linked reforms to maintaining Kenya’s global aviation standing.

Presentation to travellers:
– Carriers may include the charge in base fares or show it as a separate line item.
– Demand effects will depend on fuel prices, exchange rates, seasonal discounts, and route health.
– Clear communication from airlines and tour operators will help travellers avoid surprises.

Legislative timeline and next steps

Current status:
– The Amendment Bill has passed Second Reading and is under scrutiny in the Committee of the Whole House.
– After committee work, it goes to final votes and then to the President for assent.

Expected timing:
– Officials expect swift movement, with implementation likely before the end of 2025, pending formal steps and publication in the Gazette.
– The Cabinet Secretary would publish the new allocation formula and any further adjustments.

How to follow progress:
– The Kenya National Assembly posts official updates and records. To track the Bill’s progress and notices, visit the exact parliamentary resource: https://www.parliament.go.ke/.
– Government gazette notices will mark the final trigger date when the new charges apply.

Practical guidance for travellers and businesses

• Check the date of travel versus the effective date; tickets issued after the Gazette notice usually reflect new charges.
• Ask airlines how the Air Passenger Service Charge appears on invoices to avoid payment confusion.
• Tour operators should review contracts and quotes covering travel after the implementation date to avoid underpricing.
• Universities and NGOs sponsoring travel should adjust budgets for the $10 international increase per ticket and Ksh100 more on domestic legs.
• Diaspora travellers visiting family should factor the increase when comparing routes and layovers.
• Small airlines serving remote areas should plan cash flow with the domestic change in mind, especially where margins are thin.

Key takeaways and risks

Positive potential:
– Replacing a long freeze with scalable, travel-linked revenue can provide predictable funding and reduce yearly budget fights.
– Tying revenue to meteorological services acknowledges that reliable weather data is essential for aviation safety and disaster readiness.
– Regional alignment reduces the risk of traffic shifting across borders due to dramatic price gaps.

Risks and concerns:
– Higher travel costs may dampen demand, particularly among budget-conscious Kenyans and domestic tourists.
– Splitting revenues among multiple agencies could slow delivery if coordination fails.
– The Committee stage is crucial to:
1. Protect airport operations from funding shortfalls.
2. Set performance targets for the Tourism Fund.
3. Ensure KMSA upgrades the meteorological tools pilots and controllers rely on.

If Parliament sets clear allocation shares and keeps reporting transparent, the public can evaluate whether the higher charges deliver measurable gains: less congestion at security, better facilities, faster immigration counters, and fewer weather-related disruptions. If implemented well, the higher Air Passenger Service Charge could become the engine for safer skies, smoother airports, and stronger destination marketing. If not, it risks being seen as just another fee on a ticket.

Kenya’s tourism and aviation sectors have shown resilience after past shocks, and the Amendment Bill aims to lock in stable funding for the next phase. The stakes are high, and the next few weeks in Parliament will decide the path forward.