Government revenues from aviation activities grew by 59 percent in the year to June 2023, as airports handled more than 11 million passengers, with flights at a four-year high.
As the aviation sector continued to post recovery from the impact of the Covid-19 pandemic, data from agencies in the aviation sector show that their revenues shot up from Sh12.6 billion to Sh20 billion.
The growth happened amid a growth in cargo and passenger flights to near 2019 levels, just before pandemic struck, triggering massive economic disruption.
Kenya Civil Aviation Authority (KCAA) data show that flights in the 2022/23 fiscal year reached 335,464 from 300,234 a year earlier.
Domestic flights constituted 202,278 while international flights totaled 76,824.
“As compared to the previous period, there was increased aircraft moving through the Kenyan airspace in the review period. Domestic aircraft registered increased movements by 2.3 percent from 197,734 recorded in the FY 2021/22 to 202,278 recorded in the FY 2022/23,” KCAA notes.
KCAA records also show that over-flights –aircraft flying through the Kenyan airspace – increased by 37.77 percent to 56,362 during the year.
With the increased activity, KCAA notes, its revenues shot up by 46 percent to Sh10.15 billion, attributable to increased air navigation services charges, and air passenger service charges.
“The increased activity through the Kenya airspace is attributed to improved performance of the aviation industry and recovery in economic activities from the interruptions brought about by the effects of Covid-19 pandemic,” KCAA adds.
Air navigation service charges rose from Sh4.2 billion in 2021/22 to Sh5.9 billion, while air passenger service charges generated Sh3.28 billion (a 73 percent rise).
KCAA charges air navigation services charges on aircraft movements, and air passenger service charges on passenger movements. “The number of passengers handled at Kenya airports increased by 24.4 percent from the 8.89 million recorded in the FY 2021/22 to reach 11.06 million recorded in the FY 2022/23,” KCAA said.
Kenya Revenue Authority (KRA) earnings from aviation revenue and air passenger service charge commissions, on the other hand, increased to Sh393.5 million in the review period from Sh247.4 million a year earlier.
The commissions constitute 2 percent of the revenues KRA collects on behalf of other agencies, meaning that total revenues from the two charges was Sh20 billion, from Sh12.6 billion in the prior year.
KRA attributed the growth to a surge of activities in the sector during the first fiscal year that did not have direct Covid-19 impacts, such as economic lockdowns and cessation of travels.
“The increase in Aviation Revenue Commission and Air Passenger Service Charge Commission is attributable to increased passenger numbers in both local and international flights in the period,” the KRA notes.
The Authority notes that air revenue commissions grew by 45 percent to Sh121.5 million while air passenger charge commission increased by 66 percent to Sh272 million during the year.
