Shaping Fiscal Policy Together:
Today, the Kenya Association of Air Operators (KAAO) participated in a high-level consultative forum with the Parliamentary Departmental Committee on Finance and National Planning, hosted by the Kenya Private Sector Alliance (KEPSA). This timely and strategic engagement signals the start of a collaborative process aimed at shaping the Finance Bill 2025 in a way that supports sustainable economic growth while safeguarding the interests of both government and the private sector.
The forum provided an important platform for open dialogue between lawmakers and industry leaders, with a shared goal of ensuring Kenya’s fiscal framework is inclusive, fair, and aligned with the country’s development objectives. As part of the private sector delegation, KAAO advocated on behalf of Kenya’s aviation industry, highlighting the sector’s unique operational challenges, tax burdens, and growth potential.
Key issues on the agenda included the recently enacted Tax Laws (Amendment) Act, 2024, and the application of Value Added Tax (VAT) across various sectors. These legislative measures have a direct impact on the cost of doing business, particularly in the capital-intensive aviation industry. As such, stakeholders emphasized the need for a predictable and supportive tax environment that encourages investment, enhances competitiveness, and reduces operational inefficiencies.
In his remarks, Hon. CPA Kuria Kimani, Chairman of the National Assembly’s Departmental Committee on Finance and National Planning, reaffirmed the importance of such stakeholder forums. He noted that sustained engagement not only empowers the private sector but also equips policymakers with the information they need to anticipate and address pain points well in advance of formal legislative deliberations.
KAAO took this opportunity to present perspectives on tax structures that disproportionately affect aircraft operators and aviation service providers—ranging from VAT treatment on aircraft parts and maintenance services to duty waivers for safety-critical imports. These issues, if unresolved, could undermine efforts to make Kenya a regional aviation hub and deter private investment in fleet upgrades, infrastructure, and skilled personnel development.
The consultative forum is a step forward in building a transparent, participatory, and reform-driven legislative process. KAAO welcomes the Committee’s openness and KEPSA’s continued leadership in facilitating such cross-sector dialogue.
As we move toward the drafting and review phases of the Finance Bill 2025, KAAO remains fully committed to engaging constructively with policymakers. Our goal is to help craft fiscal policies that not only reflect the realities on the ground but also unlock the full potential of aviation as a driver of economic growth, job creation, and national development.
We extend our gratitude to the Committee, KEPSA, and all stakeholders involved for their commitment to a collaborative and future-focused approach to public finance reform.
