The Kenya Airports Authority (KAA) has begun plans to review concession and cargo charges for businesses operating at Jomo Kenyatta International Airport (JKIA), Wilson Airport, Moi International Airport, Kisumu International Airport and Eldoret International Airport.
In a public notice obtained by Kenyans.co.ke, the authority said the proposed changes are intended to bring the charges closer to current market values while helping meet increasing costs for operations, maintenance and infrastructure development.
KAA’s proposed review seeks to update a framework that has governed fees for various airport businesses for decades after the current Concession Order was introduced in 1996.
“The existing Concession Order dates back to 1996. The proposed review seeks to align fees with prevailing market value and offset rising airport operational costs, maintenance costs and infrastructural development requirements,” KAA stated.
Kenya Airports Authority headquarters at the JKIA in Nairobi
Photo KAA
Under the existing schedule, ground handling providers serving cargo and passengers pay 7 to 12 per cent of annual gross turnover, while cargo-only handlers pay 7 to 10 per cent, with both categories subject to a minimum annual fee of Ksh1 million.
Duty-free shops pay 10 per cent of turnover, with a minimum annual charge of Ksh25,962 ($200) per square metre, while courier services, clearing and forwarding firms, cargo consolidators, taxi counters, car rentals and travel desks generally pay 6 per cent of turnover, with minimum annual fees varying by category.
Other charges include Ksh350 per cubic metre for aviation fuel uplift sales, Ksh6 per kilogram for cargo handling under Wilson Airport, and 50 per cent of gross turnover for advertising billboards and hoardings, compared with 25 per cent for other advertising formats.
In 2011, KAA proposed introducing a cargo concession fee of Ksh0.50 per kilogram, subject to a minimum charge of Ksh250 per airway bill or consignment, to replace the percentage-based levy on clearing and forwarding agents’ annual turnover, but the proposal was not approved.
Any changes arising from the latest review could affect the operating expenses of businesses paying the charges, although KAA has not yet announced the proposed new rates or confirmed whether individual fees will increase.
The authority has invited government agencies, airlines, cargo companies, ground handlers, transport providers, hospitality businesses, financial institutions, concessionaires and members of the public to submit their views on new rates.
Written submissions should be emailed to marketing.publicparticipation@kaa.go.ke by December 1, with the relevant review documents available on the KAA website.
Additionally, public participation forums will be held on Tuesday, November 24, at the Panari Hotel in Nairobi from 9am to noon, covering JKIA and its cargo operations, as well as Wilson Airport.
In Mombasa, the meeting will take place at PrideInn Paradise Beach Resort and Spa from 8am to noon to discuss Moi International Airport, while stakeholders in Kisumu will meet at Acacia Premier Hotel from 8am to noon to discuss Kisumu International Airport.
In Eldoret, a forum will be held at Boma Inn Hotel from 8am to noon to discuss Eldoret International Airport.
The review comes as KAA pursues changes to its commercial and operational framework following its transition into a public limited company in June, while also planning major airport infrastructure upgrades, including the Ksh154.2 billion expansion of JKIA.
An image of the Moi International Airport in Mombasa, Kenya.
KAA