| Yesterday, KAAO, joined by International Air Transport Association (IATA), African Airlines Association (AFRAA), alongside our contracted tax consultant appeared before the National Assembly Departmental Committee on Finance and National Planning during the stakeholder participation process to present proposals on the Finance Bill 2026, with a focus on the retention of VAT, IDF, and RDL exemptions on aircraft, aircraft parts, and essential aviation inputs.
During the presentation, KAAO expressed sincere appreciation to the Committee for its continued support of our proposal over the last three budget cycles. This consistent consideration has played a meaningful role in strengthening sector performance, reflected in improved passenger traffic and enhanced revenue collection across key institutions including KRA, KCAA, and KAA-underscoring the multiplier effect of a stable and enabling aviation fiscal environment. KAAO further reinforced that the proposed changes in the Finance Bill come at a critical juncture for the industry, where predictability and policy stability remain essential to sustaining recovery and growth. It was emphasized that aviation is not only a transport sector, but a strategic national lifeline-one that directly powers flagship tourism initiatives such as Magical Kenya and Tembea Kenya, both of which rely heavily on a robust, accessible, and cost-efficient aviation network to attract visitors, connect destinations, and sustain the tourism economy. Within this context, maintaining a favourable tax regime for aviation and aviation inputs remains fundamental. It is this framework that ensures Kenya remains competitive as a regional aviation and tourism hub, while continuing to unlock wider economic value across multiple sectors. KAAO continues to actively lobby, engage, and advocate with policymakers towards the advancement of a sustainable and competitive aviation sector, ensuring that industry interests are safeguarded within evolving fiscal and regulatory frameworks. |
