On June 5, 2024, KAAO submitted our memorandum on the Finance Bill 2024 to the National Assembly’s Committee on Finance and Planning. We were also joined by the Association of African Aviation Training Organizations-Kenya Chapter (AATO-KE), who requested inclusion in the submission, demonstrating strong industry collaboration.
The Finance Bill 2024 threatened to roll back critical VAT exemptions that support the aviation sector. The Bill proposed to remove exemptions on:
- Aeroplanes and other aircraft of unladen weight not exceeding 15,000 kgs (8802.30.00)
- Hiring, leasing, and chartering of aircraft
- Direction-finding compasses, instruments, and appliances for aircraft.
Removing these exemptions would have significantly increased the cost of operations in the aviation industry, leading to higher costs for airlines, training institutions, and ultimately, for passengers. Through our memorandum, we strongly advocated for the retention of these exemptions, emphasizing that their removal would undermine the growth, sustainability, and competitiveness of the aviation industry. We stressed the importance of maintaining a supportive policy environment that protects jobs, promotes investment, and ensures the continued affordability and accessibility of air transport in Kenya and the region.
Our submissions were built on careful analysis and extensive consultations with experts across the aviation value chain. We made the case that aviation is a key driver of Kenya’s economy, supporting tourism, trade, and employment, and that weakening the sector through additional tax burdens would have far-reaching negative consequences.
Beyond this submission, we continue to prioritize strong advocacy efforts to ensure that the aviation industry’s voice is heard at every level of policymaking. We believe that by working proactively with government and stakeholders, we can secure a stable, competitive, and sustainable future for the sector. The Finance Bill 2024 discussions are a crucial opportunity to safeguard the gains made over decades and to position Kenya’s aviation industry for continued growth on the African and global stage.
