Kenya’s airline operators have joined other tourism stakeholders in opposing the new park fee payment system introduced by the Kenya Wildlife Service (KWS).
Under the new system, only M-Pesa and Visa card payments are accepted, with the KWS scrapping the bank transfer option that many tour operators relied on for group payments. What has further unsettled the industry is the introduction of an 8.5 percent processing fee for all card payments, a rate KTF says is high compared to other government platforms.
The KWS has also been faulted for using an inflated exchange rate of Sh135 per US dollar, which is higher than the Central Bank of Kenya’s current rate of around Sh129.50.
Alex Avedi, CEO of Safarilink Aviation, says the new system has triggered booking cancellations and uncertainty among tour agents who are the main clients for local airlines flying tourists to parks and conservancies.
“We are at the end of the chain; we only fly on behalf of agents. When agents face cancellations, it hits us directly. We make investment and operational plans based on projected passenger numbers, and once you commit to acquiring an aircraft, it’s a long-term engagement. It’s not something you can easily walk away from,” he said.
Mr Avedi said the abrupt changes, including the withdrawal of bank transfers and the introduction of an 8.5 percent card processing fee, have led to a drop in air traffic to key tourist destinations.
He added that the uncertainty caused by frequent policy shifts is undermining investor confidence and hurting the country’s image in key source markets.
“In regions like the EU, once a safari quote is given, it cannot be changed. When additional costs are introduced suddenly, the travel agents have to absorb the loss and that risks pushing them out of business,” said Mr Avedi.
He warns that unless the government reconsiders the new system, Kenya risks losing high-value tourists to rival destinations that offer more stable and predictable policies.
Kenya Tourism Federation Chairman Fred Odek said the sector is already under immense pressure and that the abrupt rollout of the new system has worsened the crisis.
According to a regulatory impact statement from the Ministry of Tourism and Wildlife, park fee revenues are projected to rise from Sh7.41 billion in 2024 to Sh16.58 billion by 2028.
However, KTF estimates that industry players risk to lose almost Sh370 million annually in the unbudgeted costs under the current system.
Mr Odek said the federation wants the government to restore the previous eCitizen-based payment system to allow multiple and flexible payment options for both local and international visitors.
It also wants the suspension of the 5 per cent gateway fee pending stakeholder consultations and review, and the full compliance with existing court orders to uphold the rule of law in managing the system.
“Digital progress should not translate into economic hardship for legitimate businesses. We remain open to collaboration with KWS and the Ministry, but urgent corrective action is needed,” he said.
