MPs back law change to inject Sh6bn into tourism sector

The tourism sector could get a Sh6 billion boost if plans to amend the Air Passenger Charge Act 2016 are successful.

MPs want the amendment to unlock the cash that the Treasury has been collecting to plug a budget deficit in the Ministry of Tourism.

Parliamentary Committee on Sports, Tourism and Culture says the changes will see the Ministry of Tourism included in the law as a beneficiary of the Kenya Airports Authority (KAA) Fund established under the Act.

The committee said the ministry plans to undertake several projects including the construction of Kenyatta International Convention Centre (KICC) annex that is expected to expand capacity of the facility to host global conferences and exhibitions at a cost of Sh27 billion.

It also plans to spent Sh29 billion to construct the Mombasa International Convention Centre that will market Kenya as a conference tourism destination in the region and internationally.

The planned building of Nairobi International Convention Exhibition Centre is estimated to cost Sh17 billion.

READ: East Africa arrivals lift Kenya’s tourism under open travel

The ministry also plans to upgrade of Mama Ngina drive waterfront into a modern recreation area of global standards.

The MPs said the amendments to the Air Passenger Service Act would unlock funding for the key priority projects.

“This would propel the unlocking of Sh6 billion that has been collected since the enactment of the Act by the national Treasury interns of air passenger taxes and enable it to meet the deficits in budget policy statement,” Victor Munyaka, who chairs the committee said in a brief to the Budget and Appropriations Committee (BAC). MPs last week adopted BAC report on the Budget Policy Statement.

The KAA Act establishes the fund where all proceeds from the levy collected under the Air Passenger Service Charge Act is paid into.