Government revenues from aviation activities surged by 59 percent in the year to June 2023, driven by a significant increase in passenger numbers and flight operations. Airports across the country managed more than 11 million passengers, with flights reaching their highest level in four years, reflecting a robust recovery from the impacts of the Covid-19 pandemic.
According to data from aviation agencies, revenues climbed from Sh12.6 billion to Sh20 billion as both cargo and passenger flights approached pre-pandemic levels. This growth underscores the sector’s resilience and its pivotal role in the broader economic recovery.
Kenya Civil Aviation Authority (KCAA) reported a notable increase in flights during the 2022/23 fiscal year, with a rise to 335,464 flights from 300,234 the previous year. Domestic flights accounted for 202,278, while international flights totaled 76,824. Over-flights, or aircraft passing through Kenyan airspace, also saw a 37.77 percent increase, highlighting the growing significance of Kenya’s aviation sector.
The boost in aviation activity contributed to a 46 percent revenue increase for KCAA, reaching Sh10.15 billion. This revenue growth was primarily driven by higher air navigation services charges and air passenger service charges. Air navigation services charges rose from Sh4.2 billion in the previous fiscal year to Sh5.9 billion, while air passenger service charges saw a 73 percent increase, totaling Sh3.28 billion.
Kenya Revenue Authority (KRA) also benefited from the aviation sector’s recovery, with earnings from aviation revenue and air passenger service charge commissions increasing to Sh393.5 million from Sh247.4 million. This rise reflects the sector’s rebound and the increased passenger numbers in both domestic and international flights.
The increase in KRA’s aviation revenue commission by 45 percent to Sh121.5 million and the 66 percent rise in air passenger charge commission to Sh272 million demonstrate the sector’s strong performance and the positive impact of reduced Covid-19 restrictions. The overall growth in aviation revenues highlights a promising outlook for the industry’s continued recovery and expansion.
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