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Kenya is set to introduce a new levy on all air tickets, affecting both domestic and international travellers. This follows the signing of the Air Passenger Service Charge (Amendment) Bill, 2025 into law by President William Ruto on October 15, 2025. The bill, sponsored by National Assembly Majority Leader and Kikuyu MP Kimani Ichung’wah, marks a significant fiscal shift in Kenya’s aviation policy.
Under the new law, passengers purchasing domestic flight tickets will pay KSh 600, while international travelers will incur a charge of USD 50 (approximately KSh 6,500). According to the bill, “every person purchasing a ticket for either an external or internal journey shall be subject to an air passenger service charge,” with rates potentially adjustable through Gazette notices issued by the Cabinet Secretary.
The revenue generated from this levy will be distributed among several key agencies, including the Tourism Fund, Kenya Meteorological Service Authority, Kenya Airports Authority, and the Kenya Civil Aviation Authority. The Cabinet Secretary will determine and publish the specific allocation of these funds in the Kenya Gazette. This initiative aims to strengthen infrastructure, enhance tourism development, and improve aviation safety and meteorological services.
The timing of the new levy coincides with a notable turnaround for Kenya Airways (KQ), which had been grappling with losses for over a decade. In March 2025, the airline reported a pretax profit of KSh 5.53 billion (USD 42.82 million), a remarkable recovery from the KSh 22.86 billion loss recorded in the previous year. Analysts believe the new levy could provide an additional revenue stream that may bolster profitability and sustainability in Kenya’s aviation sector.
The air levy announcement also comes on the heels of a major diplomatic milestone — a visa-free travel agreement between Kenya and Senegal. The deal, witnessed by Presidents William Ruto and Bassirou Diomaye Faye, allows citizens of both nations to travel visa-free for up to 90 days. This agreement is expected to enhance tourism, trade, and cultural exchange, fostering stronger ties between East and West Africa.
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The introduction of the air ticket levy demonstrates Kenya’s strategy to diversify revenue streams within its aviation and tourism sectors. While some travelers may face higher costs, the measure is designed to support critical national institutions and ensure sustainable growth across the broader transport and tourism ecosystem.
In a regional context, the move also underscores Kenya’s efforts to remain competitive amid growing challenges from neighboring countries like Tanzania, whose thriving port and logistics sectors have prompted Kenya to reassess its business strategies and strengthen its economic resilience.
