The industry currently accounts for approximately 5 percent of Kenya's GDP and supports over 410,000 jobs, underscoring its importance.
To realise the full potential of the aviation industry, strategic investments and reforms are necessary. Infrastructure development, such as modernising airports and expanding runways, is critical to accommodate increasing passenger and cargo traffic.
The government has taken vital steps towards modernising the country’s aviation infrastructure through the recent approval of the Jomo Kenyatta International Airport (JKIA) Medium-Term Investment Plan, initiating a comprehensive overhaul of the ageing airport.
This plan aims to upgrade the passenger terminal, runway, taxiway, apron, and airside facilities to meet global aviation standards.
Under the new plan, a state-of-the-art terminal capable of handling 20 million passengers annually will be constructed, with work set to begin later this year and be completed by 2025/26.
Additionally, Terminal 1E will undergo refurbishment to enhance its facilities and services.
Timely delivery of this project is crucial to avoid further deterioration of the existing infrastructure, ensure safety standards are met, and support the anticipated growth in passenger and cargo traffic, which is essential for maintaining Kenya’s competitive edge in the region.
However, the government's noble actions reveal a contradiction. While it invests in modernising JKIA to boost the aviation industry, it also proposed ending value-added tax exemptions for the local aviation industry in the now-dismissed Finance Bill.
This policy shift would have negatively impacted the industry's sustainability and disincentivised growth and investment.
To ensure the aviation industry continues to thrive, the government must introduce and maintain policies that are both progressive and predictable.
Kenya Airways, as a key player in the industry, exemplifies the broader challenges and opportunities faced by the industry. The airline’s strategic recovery plan, ‘Project Kifaru,’ aims to address critical bottlenecks hindering its growth.
Initiatives like optimising operational efficiency, improving customer service, and developing human capital are essential for building a resilient airline that supports the country's economic development.
However, the success of individual airlines like Kenya Airways depends on the overall health of the aviation ecosystem. Additionally, strategic investments in technology can enhance the passenger experience and operational efficiency.
The future growth of Kenya’s aviation industry hinges on collaboration between government, industry stakeholders, and international partners.
By addressing existing challenges and seizing new opportunities, the industry can drive economic growth and position Kenya as a leading aviation hub in Africa.
