On December 8, 2024, officials from the Kenya Association of Travel Agents (KATA), led by Chairman Dr. Joseph Kithitu and CEO Nicanor Sabula, presented a petition to the National Assembly Committee of Finance and Economic Planning opposing a proposed 16% VAT on air travel services. The KATA argues that this tax would adversely affect Kenyan travel agents, diminish business competitiveness, and potentially lead to job losses within the sector [56e40aa1].
The petition emphasizes that the proposal mischaracterizes air travel as a luxury exclusive to the wealthy, overlooking its significance for various socio-economic groups. Domestic airlines have made air travel increasingly accessible, with fares as low as Sh5,000, thus making air travel a necessity rather than a luxury for many Kenyans [56e40aa1].
KATA warns that implementing this VAT could particularly harm small and medium-sized businesses that depend on affordable flights for their growth and operations. The association advocates for tax policies that reflect the evolving role of air travel in Kenya's modern economy, stressing the need for a balanced approach that supports both the industry and the traveling public [56e40aa1].
As the debate over the proposed VAT unfolds, stakeholders are calling for a more nuanced understanding of the air travel sector's impact on the economy and the livelihoods of ordinary Kenyans, urging lawmakers to reconsider the implications of such taxation [56e40aa1].