Higher aviation taxes and passenger charges have raised concerns that Kenya could become a more expensive and less competitive tourism destination.
Recent policy changes include an increase in the air passenger service charge for domestic and international travellers alongside tax measures affecting aircraft leasing, maintenance, spare parts and other aviation services. Although some of the changes appear modest on paper, industry players say they add to a growing list of costs eventually passed on to travellers through higher airfares.
The government says the additional revenue is necessary to improve aviation infrastructure, safety, tourism promotion and airlines. For a country that welcomed record visitor numbers and continues to market itself as a gateway to Africa, tour operators worry that higher costs could undermine efforts to grow tourism, particularly at a time when global competition for tourists is intensifying.
Tina Sayed Nestius, Founder of Swedish safari specialist Afrika Kompaniet, says an increase in the overall cost of travel ultimately affects destination competitiveness, particularly as travellers compare African destinations offering similar safari experiences.
The effects are already becoming visible among some international travellers, says Bainito Musumbi of Private Safaris. “The increase has seen more clients cutting their travel budgets. Many are reducing the length of their stay and spending less while visiting the destination.”
He says the ripple effects extend beyond holidaymakers. “One aspect of tourism that has been affected this year is attendance at international tourism marketing expos. It has been very low because of uncertainty and the rising cost of travel.”
Air taxes deter bookings
Aviation taxes risk discouraging travel at the earliest stage when travellers are deciding whether to book, says Håvar Bauck, Founder of HotelOnline.
“Taxes on air tickets are among the most counter-productive because they influence decisions before visitors even arrive. Kenya should make it easier and more affordable for people to travel here. Encourage every airline that wants to bring passengers here. Make it easy and affordable to fly to Nairobi, Mombasa, Diani and other destinations. Rather than taxing every step of the journey, focus on increasing the size of the tourism economy.”
He points to Kenya’s strong tourism economy where international visitors spent approximately US$5 billion in 2025 while domestic tourism generated a further US$4.5 billion.
“The biggest source of revenue is not the tax on the flight ticket. It is the money tourists spend once they arrive. If tourism spending increases by US$1 billion, government value-added tax collections alone rise significantly before considering all the additional taxes generated through hotel stays, transport, restaurants, attractions and business profits.”
Industry leaders caution against viewing aviation taxes in isolation as tourism pricing is influenced by a combination of factors, says Felix Migoya, Chairman of the East Africa Tour Guides and Drivers Association. “Taxes in general have an impact on travel and tour operations. Increases in licences, park entry fees and other operational costs all affect destination pricing. However, international travel is also influenced by external factors. Perceptions of threats, whether health-related such as Ebola outbreaks or security concerns, can significantly affect tourism demand.”
