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Originally published by The Standard Business
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May 29, 2026
1w ago

Finance Bill will hit sector hard, warn aviation industry players

Finance Bill will hit sector hard, warn aviation industry players

Local aviation and logistics industry players have opposed clauses in the Finance Bill that remove tax exemptions for airlines...

✨ Key Highlights

Kenyan aviation and logistics players are strongly opposing clauses in the Finance Bill that would remove tax exemptions for airlines, warning of significant negative impacts on the sector.

  • The proposed changes include reintroducing a 16 percent VAT on aircraft and parts, along with the Import Declaration Fee (IDF) and Railway Development Levy (RDL) on imported aviation technical components.
  • Key stakeholders opposing these measures include the Kenya Association of Air Operators (KAAO).
  • The industry warns that these tax increases will inflate capital and maintenance expenditures, potentially slowing down fleet modernization and increasing costs for commodity exporters.

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