Banker building air cargo empire

But it was rather odd that cargo aircraft ferrying those critical food and medical supplies had to come from Dubai to Nairobi, fly the consignments to various destinations and then travel back to Dubai, a business opportunity that many investors failed to grab.

“Being a supplier of goods to the United Nations and other aid agencies across the region, I saw a business opportunity I could tap into and that marked the start of our journey in the aviation sector as a cargo airline in the year 2000,” says the founder of Astral Aviation.

However, after a few years of operation, he realised that Nairobi, as a premier cargo hub in Africa, offered a significant opportunity to expand into non-relief cargo.

The founder of Astral Aviation started partnering with freight forwarders and other airlines operating from Jomo Kenyatta International Airport (JKIA).

"Our first non-aid relief cargo was to Mwanza, Tanzania, transporting mining equipment. On the return trip, we brought fish consignments to Nairobi and Amsterdam, Netherlands," recalls Sanjeev.

A banker by profession, Sanjeev, who was born and raised in Kisumu, never felt at home in the banking industry due to the numerous restrictions on foreign exchange.

He found his calling as an entrepreneur well before venturing into aviation.

But operating in the aviation sector has its turbulence days.

Running a cargo or passenger airline, according to Sanjeev, requires stringent financial discipline and a focus on maintaining low operational costs.

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This is especially challenging in Africa, where high taxation regimes and expensive loans from banks add to the financial burden. A good number of airlines he says rely on loans from banks that tend to charge high interest rates.

“In some instances, the interest cost outweighs the profit margin. National airlines get support from governments while private airlines do not and with that challenge on their way, some airlines are unable to meet capital requirements,” says Sanjeev.

"Also, banks in Kenya do not support the aviation sector strongly, unless it is supported by the government because they are considered high risk and financial institutions usually get nervous due to the many inherent challenges."

Opportunities in aviation

Despite the risks, Sanjeev remains optimistic about the opportunities within the aviation sector, even as challenges like high taxation persist across Africa.

"When we started 25 years ago, regulatory frameworks didn’t favour African airlines. In many countries, traffic rights were very restrictive," he says.

While changes, such as the African Union’s push for a single air transport market, are helping improve conditions, a lot still needs to be done.

"It was far more difficult to fly between African countries than, say, flying from Nairobi to Dubai," Sanjeev adds. The airline’s designation as a national carrier in 2008 helped improve its accessibility across the continent.

Infrastructure also plays a crucial role in the success of cargo airlines like Astral Aviation.

Sanjeev highlights the contrast between Nairobi’s well-equipped cargo facilities at JKIA and other African airports that lack sufficient cargo handling equipment, storage facilities, warehouses and proper lighting.

"Some airports force aircraft to offload cargo directly onto trucks, which reduces efficiency and increases turnaround time," he says.

However, he notes that many airports are now investing in improved infrastructure. E-commerce has had an impact on cargo capacity too. In late 2024, Kenyan fresh produce exporters suffered significant losses due to limited cargo capacity on airlines.

Sanjeev attributes this to the high demand from Chinese e-commerce giants, which pushed airlines to prioritise routes to Europe and the US.

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“Flying from China to Europe pays well compared to Africa to Europe and the Chinese e-commerce giants were willing to pay three times more for a round trip and lot of airlines decided to reduce their capacity to Africa during that period,” says Sanjeev.

While Sanjeev understands why airlines made these decisions, he notes the pressure on cost reduction and revenue increase. As a Kenyan carrier, he would have made similar choices.

Navigating fuel price fluctuations and seizing opportunities is another thing that the aviator has had to learn.

Fuel costs, which account for 55 percent of Astral Aviation’s expenses, pose a significant risk due to the frequent fluctuations caused by geopolitical tensions and wars.

"Fuel price hikes, even by just one cent, can have a major impact on our bottom line," Sanjeev adds.

But the business has not been all gloomy. While the Covid-19 pandemic hit businesses hard, it turned out to be a blessing in disguise for Astral Aviation.

Although the initial stages of the pandemic caused concern with airport closures, Sanjeev’s company quickly adapted to the growing need for transporting personal protective equipment (PPE) and oxygen cylinders.

"We made the highest number of flights during that period, collecting PPEs [personal protective equipment] from China and delivering them to 48 African countries. It was good business," he says.

With four aircraft, Sanjeev plans to expand by acquiring four more planes, with China as the next growth frontier.

"I see a lot of opportunities in China-Africa trade, and there’s plenty of room for growth in this sector," he says.

Business certainty

Is there one thing that worries him most now? Despite the promising growth prospects, Sanjeev expresses concern about the loss of funding for humanitarian agencies like USAid, which has created uncertainty for businesses like Astral Aviation.

"We now have to be more innovative to stay ahead," he says.

Being in business for 25 years takes resilience, is there any regrets?

Sanjeev admits that in his entrepreneurial journey, he has made lots of mistakes but every mistake has enabled him to learn a new lesson.

“We were very impulsive when getting aeroplanes and whenever we saw one, we could put a down payment. We learnt to be selective and choose wisely. We now carry out due diligence to get an aircraft that will serve us for the longtime,” he says.

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