KAA Moves to Reassess Charges at JKIA and Other Airports

The Kenya Airports Authority (KAA) has started plans to review concession, and cargo charges for businesses operating at five major airports across the country, including Jomo Kenyatta International Airport (JKIA) in Nairobi.

The proposed review will also cover Wilson Airport, Moi International Airport, Kisumu International Airport and Eldoret International Airport.

The authority says the changes are intended to align existing fees, with current market rates while helping it meet rising operational and maintenance costs.

In a public notice, KAA explained that the current concession framework dates back to 1996. The authority said the review was necessary to reflect changes in the aviation sector and cater for growing infrastructure development needs.

The charges affect a range of businesses operating within airport facilities, including ground handling companies, cargo agents, duty-free shops, courier firms, taxi operators, car rental companies and travel agencies.

Under the existing schedule, ground handling providers serving both passengers and cargo pay between 7% and 12% of their annual gross turnover. Cargo-only handlers pay between 7% and 10%, with both categories subject to a minimum annual fee of KSh1 million.

Duty-free shops pay 10% of their turnover, with a minimum annual charge of KSh25,962 per square metre. Other businesses, including clearing and forwarding firms, cargo consolidators, taxi counters, car rentals and travel desks, generally pay 6% of turnover, although minimum annual fees vary depending on the category.

The authority also applies specific charges to other airport activities. Aviation fuel uplift sales attract a fee of KSh350 per cubic metre, while cargo handling at Wilson Airport is charged at KSh6 per kilogram under the existing schedule.

Advertising businesses operating at airports face separate rates, with billboard and hoarding operators paying 50% of gross turnover. Other advertising formats attract a rate of 25%.

KAA said the proposed changes are aimed at updating a fee structure that has remained in place for decades. However, the notice provided did not specify the final revised rates or when the new charges would take effect.

The review could affect operating costs for businesses using airport facilities, although the impact will depend on the rates eventually adopted by the authority.

LINK: https://www.kenyans.co.ke/news/128802-kaa-review-concession-and-cargo-charges-jkia-other-airports?utm_source=Facebook&utm_medium=ME&fbclid=IwY2xjawVIGUFleHRuA2FlbQIxMQBwZG9mBHNydGMGYXBwX2lkDzQwOTk2MjYyMzA4NTYwOQABHrnePFdg_yPcrZaun0rddelzCYSE7TBlv-BZhwhFFJrJm28ZIR-jO0eXiHKz_aem_TDsT4S3AjzHr5YbjwBHaGQ

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