Stakeholders presenting their views on the Finance Bill, 2025 have called for reconsideration of some of the proposals contained, saying majority of them could have heavy implications on the cost of services they render.
The Kenya Association of Air Operators (KAAO) said the Finance Bill 2025 seeks to reintroduce Value Added Tax, Import Declaration Fees and Railway Development Levy on aircraft, parts, and maintenance services.
In their memorandum to the National Assembly Finance Committee that is currently holding public hearings on the Bill, KAAO noted that the said measures that would fundamentally alter the cost structure of aviation in Kenya.
They insisted that the industry requires certainty on policy and the current constant twist and turns in policy environment do not give confidence for long term and capital-intensive investments required for the sector to flourish "These proposed changes threaten to unravel recent progress made and puts at risk Kenya's position as a regional leader in air connectivity, fleet modernisation, and innovation," read their memorandum.
