Report On Consideration Of Sessional Paper No. 6 Of 2024 On The National Aviation Policy

REPUBLICOFKENYA

THENATIONALASSEMBLY

THIRTEENTHPARLIAMENT-FIFTHSESSION-2026

DEPARTMENTALCOMMITTEEONTRANSPORTANDINFRASTRUCTURE

REPORT ON:

CONSIDERATIONOFSESSIONALPAPERNO.6OF2024ONTHENATIONAL AVIATIONPOLICY

Clerk'sChambers Parliament Buildings NAIROBI

February,2026

Contents

| ABBREVIATIONS | ABBREVIATIONS | 2 | |--------------------------------------------------------------------|--------------------------------------------------------------------|-----| | LISTOFANNEXURES | LISTOFANNEXURES | 3 | | 1.0PREFACE | 1.0PREFACE | 5 | | 1.1 | IntroductionandCommitteeMandate | 5 | | 1.2 | CommitteeSubjects and Oversight | 6 | | 1.3 CommitteeMembership | 1.3 CommitteeMembership | 7 | | 1.4 | Secretariat | 8 | | CHAPTERTWO | CHAPTERTWO | 9 | | 2.0 OVERVIEWOFSESSIONALPAPERNO.6OF2024ONTHENATIONAL AVIATIONPOLICY | 2.0 OVERVIEWOFSESSIONALPAPERNO.6OF2024ONTHENATIONAL AVIATIONPOLICY | 9 | | 2.1 Introduction | 2.1 Introduction | 9 | | 2.2StrategicPolicyObjectivesoftheNationalAviationPolicy | 2.2StrategicPolicyObjectivesoftheNationalAviationPolicy | 10 | | CHAPTERTHREE | CHAPTERTHREE | 12 | | 3.0BACKGROUNDINFORMATION | 3.0BACKGROUNDINFORMATION | 12 | | 3.1 Situational Analysis | 3.1 Situational Analysis | 12 | | 3.2 Kenya Airways (KQ) | 3.2 Kenya Airways (KQ) | 13 | | 3.3JomoKenyattaInternationa!Airport(JkiA) | 3.3JomoKenyattaInternationa!Airport(JkiA) | 13 | | 3.4 Recommendationsby theTwelfth Parliament | 3.4 Recommendationsby theTwelfth Parliament | 14 | | 3.5 Comparative Analysis | 3.5 Comparative Analysis | 14 | | 3.6LegalFrameworkonTheNationalAviationPolicy | 3.6LegalFrameworkonTheNationalAviationPolicy | 15 | | CHAPTERFOUR | CHAPTERFOUR | 17 | | 4.0 | PUBLICPARTICIPATION/STAKEHOLDERSCONSULTATION | 17 | | 4.1 | SubmissionbytheMinistry ofRoads and Transport | 17 | | 4.2 | Submission by Kenya Airways (KQ) | 22 | | 4.3 | Submissionby theKenya Revenue Authority | 25 | | 4.4 | Submission by Kenya Association of Air Operators | 31 | | 4.5 | Submission Mr.Mwenda Mabura,a Pilot | 34 | | 5.0 | COMMITTEEOBSERVATIONS | 36 | | 6.0 | COMMITTEERECOMMENDATIONS | 37 |

ABBREVIATIONS

AIP

Aeronautical InformationPublication

AMO

Approved Maintenance Organization

APSC

Air Passenger Service Charge

EACCMA -

EastAfricaCommunityCustomsManagementAct

IDF

Import Declaration Fee

GDP

Gross DomesticProduct

KAA 一

Kenya Airports Authority

KAAO

KenyaAssociationofAirlineOperators

KCAA

Kenya Civil Aviation Authority

MRO

Maintenance andRepairOrganization

RDL

RailwayDevelopmentLevy

VAT

Value Added Tax

LISTOFANNEXURES

Annexure I:Report adoption list

Annexure 2: Minutes of the Committee Sittings on Consideration of Sessional Paper No. 6 of 2024on the National AviationPolicy

Annexure3:Advertisementinthelocal dailiesinvitingthepublictomakesubmissions ontheSessionalPaper

Annexure4:Writtensubmissionsfrom thestakeholders

CHAIRPERSON'SFOREWORD

Sessional Paper No. 6 of 2024 on the National Aviation Policy was tabled in the House on 14th Infrastructure for consideration and reporting to the House.

Themainobjectiveof theNational AviationPolicyistostrengthen thenational aviation industry in the global market. The specific objectives of the Policy include to foster the growth of the leader in aviation, and to enhance Kenya's connectivity at a national and international level by ensuring safe,secure,and competitive access which is responsive to the needs of business, tourism,andthepopulation.

Pursuant to the provisions of Article Il8(l) (b) of the Constitution, the Committee, through an advertisement in the local daily newspapers of 14th November 2024, invited the public to make s Additionally,vialettersRef:NA/DDC/T&l/2024/086andRef:NA/DDC/T&l/2024/087bothdated 10th December 2024, the Committee requested relevant stakeholders, including the Kenya Airways (KQ), Kenya Association of Airline Operators, (KAAO), Kenya Airline Pilots Association, (KAPA) and Kenya Revenue Authority, (KRA) to submit their views on the Sessional Paper. Subsequently, the Committee received five (5) memoranda from the Ministry of Roads and Transport, Kenya Airways (KQ), Kenya Association of Airline Operators (KAAO), Kenya Revenue Authority (KRA), and Mr. Kennedy Mwenda Mabura, a Pilot.

The Committee held five (5) sessions to consider the Sessional Paper and recommended that the House adopts and approves Sessional Paper No. 6 of 2024 on the National Aviation Policy.

TheCommittee isgrateful totheOfficesof theSpeaker and theClerkof theNational Assembly for the logistical and technical support accorded to it during the consideration of the Sessional Paper. I wish to express appreciation to the Honourable Members of the Committee and the CommitteeSecretariatfortheirresilienceandcommitmenttoduty,whichmadethe considerationoftheSessionalPapersuccessful.

On behalf of the Committee and under provisions of Standing Order 216(5)(b), 208B (1) and 199 (6), it is my pleasant privilege and honour to present to this House the report of the Committee on itsconsiderationofSessionalPaperNo.6of2024on theNational AviationPolicy.

HON.GK GEORGE KARIUKI, CBS, MP CHAIRPERSON

1.0PREFACE

1.1 IntroductionandCommitteeMandate

• 1.The Departmental Committee on Transport and Infrastructure is established under the NationalAssembly Standing Orders No.2l6(l). The functions and mandate of the Committee as per Standing Orders, No. 216(5) include: -
• a) To investigate, inquire into, and report on all matters relating to the mandate, management, activities,administration,operations and estimates of the assigned ministries and departments;
• b)To study the programme and policy objectives of Ministries and departments and the effectivenessof theirimplementation;
• c)Tostudyandreviewall thelegislationreferredtoit;
• d)To study,access and analyze therelative success of the Ministries and departments as measured by the results obtained as compared with their stated objectives;
• e)To investigate and inquire into all matters relating to the assigned Ministries and departments as they may deem necessary, and as may be referred to them by the House;
• To vet and report on all appointments where the Constitution or any law requires the National Assembly to approve, except those under Standing Order No.204 (Committee on appointments);
• g)To make reports and recommendations to the House as often as possible, including recommendations ofproposed legislation;
• h)ToconsiderreportsofCommissions andIndependentOfficessubmittedto theHouse pursuant to the provisions of Article 254 of the Constitution; and
• i)To examine any questions raised by Members on a matter within its mandate.
• i)To examine treaties,agreements and conventions;

2. The subject matter of the Departmental Committee on Transport and Infrastructure are statedintheSecondScheduleof theNationalAssemblyStandingOrdersasfollows: Transport, including non- motorized transport and maintenance of Roads, rails, air and marine transport, seaports and national integrated infrastructure policies and programmes and transport safety.

CHAPTERONE

1.2 CommitteeSubjects and Oversight

3. The Committee is mandated to consider the following subjects as per the second schedule of theStandingOrders: 2. (i) Transport, including non-motorized transport; 3. (ii) Construction and maintenance of roads; 4. (ii) Rails, air and marine transport; Seaports and national integrated infrastructure 5. (iv) policies and 6. (v) programmes;and 7. (vi) Transport safety. 8. 4.The Committee oversees the Ministry of Roads and Transport which has three (3) state departments, namely:

• i) The State Department for Roads;

10. ii) TheStateDepartmentforTransport;and 11. ili)The State Department for Aviation and Aerospace Development. 5. Further, Committee also oversights the State Department for Shipping and Maritime Affairs which is under the Ministry of Mining, Blue Economy, and Maritime Affairs.

I.3 Committee Membership

• 6.TheCommitteecomprisesthefollowingMembers:

TheHon.G.K.GeorgeKariuki,CBS,M.P-Chairperson Ndia Constituency

United Democratic Alliance Party

TheHon.Mutua DidmusWekesa Barasa,CBS,M.P-Vice-Chairperson Kimilili Constituency

United DemocraticAllianceParty

The Hon. Arama Samuel. M.P Nakuru Town West Constituency Jubilee Party

The Hon.Kiunjuri Festus Mwangi, M.P. Lailkipia East Constituency

The Service Party

The Hon.AbdulRahim Dawood,CBS,M.P. North Imenti Constituency

The Hon.Bady,Bady Twalib,M.P. Jomvu Constituency

Independent

Orange Democratic Movement Party

The Hon. Naicca, Johnson Manya, CBS, M.P Mumias West Constituency

The Hon.Abdirahman,Husseinweytan Mohamed,M.P. Mandera East Constituency

OrangeDemocraticMovementParty

The Hon.Elsie Muhanda,M.P. Kakamega County

Orange Democratic Movement Party

Orange Democratic Movement Party

The Hon. Komingoi Kibet Kirui, M.P. Bureti Constituency United Democratic Alliance Party

The Hon. Francis, Kajwang' Tom Joseph, CBS, MP

Ruaraka Constituency

OrangeDemocraticMovementParty

The Hon. Chege John Kiragu, CBS, M.P. Limuru Constituency

United Democratic Alliance Party

The Hon. Kiaraho, David Njuguna, M.P. Jubilee Party Ol Kalao Constituency TheHon.Saney ibrahimAbdi,M.P WajirNorth Constituency

United DemocraticAllianceParty

The Hon.Jhanda Zaheer,M.P Nyaribari Chache Constituency

UnitedDemocraticAlliance

1.4 Secretariat

7. The Committee is serviced by the following Members of Staff:

HeadofSecretariat Ms.TracyChebetKoskei Principal Clerk Assistant Il

Mr.MohamednurM.Abdullahi

Mr. Binensa Mabungu

Clerk Assistant

Clerk Assistant

Mr. Abdinasir Y. Moge

Mr.Erick Kariuki

Fiscal Analyst

Research Officer

Ms.Faith Makena

Ms.Patricia Gichane

Serjeant-at-ArmsII

Legal Counsel

Ms. Rinha Saineye

Mr.Danton Kimutai

MediaRelationsOfficer

Audio Officer

CHAPTERTWO

2.0OVERVIEW OFSESSIONALPAPERNO.6 OF2024 ON THENATIONAL AVIATIONPOLICY

2.1Introduction

• 8.SessionalPaperNo.6ontheNationalAviationPolicyoutlinesthegovernment'sintentto address challenges in Kenya's aviation sector, positioning it as a key enabler for economic growthandVision2030.
• 9.ThePolicyis structured asfollows:
• ChapterIcoversGovernancematters andaddressesthecurrentinstitutional frameworkandtherecommended institutionalsetting;
• i) environmentandsustainability,andeconomicregulation;
• i)Chapter3focusesonConnectivityandAviationServices,includingthe airtransport market, airlines, cargo, regional and general aviation, taxation, and maintenance and repair organizations (MRO);
• iv) Chapter 4 discusses Airports, covering management and operation, planning and development, and investment needs and financing;
• Chapter 5 is on Air Navigation and addresses both the provision of service and the related infrastructure;
• vi)Chapter6isonHumanResourcesDevelopmentand coversthe attraction,recruitment andretention of aviationpersonnel;
• vii)Chapter7isonData and Statisticsand comprises the collectionofstatisticaldata and informationon the aviationsector and theirpublication.

10.The Components of Kenya'sNational Aviation Policy are,

• i.Safety and Security: The policy emphasizes adherence to international safety standards and the implementation of robust security measures to ensure the safety of air travel within andbeyondKenya'sborders.
• Infrastructure Development: It outlines plans for the expansion and modernization of airport facilities to accommodate increasing air traffic and enhance operational efficiency.
• ili.Environmental Sustainability:The policy includes strategies to minimize the environmental impact of aviation activities, promoting sustainable practices within the industry.
• aviationindustry.

• and international levels, supporting the needs of business, tourism,and the general population.

2.2 Strategic Policy Objectives of the National Aviation Policy

• Il. The policy is intended to provide a primary framework for the future actions of the Governmentintheaviationindustryofthecountryinvolvingtheformulationofthenational strategy as the guideline to the entire sector development.The Main objectivesof theNational Aviation policy are:
• = )Tofoster thegrowthof the aviationbusinessinKenyatosupport jobcreationby positioningKenya asarecognizedregional leaderinaviation;
• ii) )To maximize the contribution of the aviation sector to Kenya's economic growth and development; and
• ii) To enhance Kenya's connectivity at a national and international level by ensuring safe, secure and competitive access which is responsive to the needs of business, tourism and the population.

12.In particular, the National Aviation policy commits to:

• i)Maintain safety as the number one priority in Kenyan aviation and ensuring that safety regulationisrobust,effectiveand efficient;
• ii) Optimizing theoperationandmaintenanceof theKenyanAirportnetworktoensure safety,efficiency andmaximumconnectivityto therestof theworldwhile contributing toboost their financial performance;
• i) Ensuring that the regulatory framework for aviation reflects best international practices and that the economic regulation facilitates continued investment in aviation infrastructure at Kenyan airports to support traffic growth and industry development;
• consumerswhileprotectingthecountry'snationalinterests;
• Creating conditions toencourage thedevelopmentofnewroutesandservices at national andinternationallevels particularly to those countries withnew market opportunities;
• vi) Developing aviation infrastructure such as airports;
• vii)Supportingaviationschoolandmaintenance,repairandoverhaulsectorstomaintain Kenya'sleading position in these spheres;
• vii)Providing adequate environment for small airlines operating in Kenya; and
• ix)Maintaining a safe and innovativegeneral aviationsector tosupportKenya'sbroader aviation industry.

• I3. The policy document has been structured into the following key thematic areas and resultant measuresthegovernmentwill implement:

1)Governance

• ii.Legislate to clearly separate air accident investigation from policy formulation functions.

2)Regulation and sustainability

• i. Establishsuitableregulatoryprovisions.
• ii. Implement a robust oversight and enforcement system for these regulations

3)Connectivity and aviation services

• i. Negotiate air service agreements based on reciprocity and equal opportunities for airlines.

4)Airports

• i. Update masterplans for busiest airports and develop a national airport development plan.

2. i.

• ii. Expand major airports, especially JKlA, to handle forecasted traffic growth
• iv. Focus on enhancing service levels at airports and especially to position JKlA as the best regional airport.
• V. Develop and operate airports based on financial sustainability and viability.

6. V.

5) Air Navigation

• i. Ensure provision of global and regional meteorological services for air navigation.
• il. Consider funding schemes for these meteorological services.

3. 6)Humanresource development:Develop trained and skilled aviation professionals through public and private aviation training institutions, aligned with the industry needs. 4. data and statistics.

CHAPTERTHREE

3.0BACKGROUNDINFORMATION

3.I Situational Analysis

14. Africa has a population of 1.5 billion people, about 20% of the global population, and only has a globalairtransportmarketof2%. 15. According to a report by the International Air Transport Association (IATA), 2023 titled "The Value of Air Transport in Kenya," the aviation sector contributes USD 3.3 billion to the GDP and generates 21,100jobs directly and a further 459,500 jobs indirectly. 16. According to the Economic Survey 2024, in 2023, air traffic passengers in Kenya were 12.2 million, of which 6.6 million were international passengers. Jomo Kenyatta International Airport handled 67.3% (8.2 million) of total air traffic passengers. In addition, the volume of the graph below: 4. s Government in 2012, and an updated version was drafted in 2020. The Policy covers the country's integrated transport system, including the six transport sub-sectors:road, rail, port and maritime, aviation, pipeline, and inland water. However, the policy only provides a broad vision for the aviation transport sub-sectorwith limited policy objectives.

Source:EconomicSurvey2024

18. The Cabinet approved boththeNational AviationPolicy and the medium-term investment requirementsfor enhancing aviationinfrastructure andotherrelatedservicesparticularlyfor Jomo Kenyatta International Airport (JKIA) on II'h June 2024.

3.2KenyaAirways(KQ)

• 19.KQwasestablishedinJanuaryI977afterthebreakupoftheEastAfricanCommunityand subsequent disbanding of the jointly owned East African Airways, and was owned wholly by the Kenyan Government. However, by 199l, the Airline was in massive debt, forcing the shares were floated in I996 to the public through the Nairobi Stock Exchange.

20. In the years after the privatisation, KQ performed impressively, challenging South African Airways, the most successful African airline at the time.However,performance changed after 21. KQ is a private company listed at the Nairobi Securities Exchange. In terms of shareholding, the Government of Kenya owns 48.9%, KQ Lenders Company 38.1%, KLM 7.8%, the employees' share ownership plan 2.4%, and other individual shareholders 2.8%. 22. Since 2013, KQ has registered losses concurrently, with the highest loss of Kshs 38 billion in 2022.TheselosseshavenecessitatedtheGovernmenttooftencome toKQ'srescuethrough bailouts.In 2017, the government provided a bailout of USD 243 million, resulting in an increase in government shareholding to 48.9%,up from 29.8%. In the 2022-23 financial year budget, Treasury allocated Kenya Airways Sh36.6 billion to help with its reorganization. However, in 2024, KQ seems to have reversed the negative position by posting a profit of 5.4 billion for the firsttimeinmorethanadecade 23. KQ has been-losing market share to its-competitors over the last few years. Ethiopian-Airlines (ET), which was siightiy iarger than KQ in 2010, has grown exponentially in recent years and hasoutpacedKQbyafactorof3sincethen.From2015to2018allcompetingcarriersinthe region increased their market share:ETby20%,Qatarby 12%,and RwandAirby 22%,all while KQlost4%.

3.3JomoKenyattaInternationalAirport(JKlA)

24. JKlA was designed and constructed in 1978 to serve about 2.5 million passengers annually and serves as a hub for most airlines'operations in the EasternAfrica region.In 20l5,the through a project referred to as the Greenfield terminal. The proposed project was expected

passengersby theyear2030.However,the expansionprojectnever materialized andsimilar othersubsequentprojectshaven'tbeensuccessful.

25. The Cabinet on IIth June 2024, considered and approved the JKIA Medium Term Investment Plan' that includes the upgrade of the passenger terminal, runway, taxiway, apron and airside facilities in keeping with the global aviation trends. While considering the JKIA Medium Term InvestmentPlan,Cabinet noted thatit was imperative toenhance thecapacity ofKenya's international airports to meet existing and projected demand, which is estimated to rise to 42.I million passengers a year by 2050.

3.4 Recommendations by the Twelfth Parliament

26. In 2019, the Departmental Committee on Transport, Public Works and Housing, in its Report ontheInquiryintotheproposedKenyaAirwaysprivatelyinitiatedinvestmentproposal to that:-

• i. That Kenya Airways be nationalized.
• ii. The government establishes an Aviation Holding Company with four wholly owned subsidiaries, namely,-

4. andcateringservices; 5. b and airstrips.UnderitsnewmandateKAAshall maintainatleastoneserviceable airstrip in each county for purposes of security,health and other emergencies; 6. c)KQ as the national carrier; and 7. d)A centralized Aviation Services College/institute. 27. On 18 June 2020, the National Management Aviation Bill,2020, was published. The Bill gave effecttotherecommendationsof theParliamentaryreportontheInquiryintotheproposed amongotherthings,recommendedthenationalizationofKenyaAirways.However,theBillwas withdrawn andlapsedwiththeexpiryoftheI2thParliament.

3.5 Comparative Analysis

a)Ethiopian Airlines

28. Ethiopian Airlines Group was originally established in June I945 and had its first scheduled flight in April 1946. It is the flag carrier of the country. The Airline is wholly owned by the Government and is managed by a board that is fully independent, and the airline does not receivesubsidiesfromthegovernment.

29. Inaugurated on 27th January 2019, Addis Ababa Bole International Airport has the capacity to through establishing strategic plans, Vision 2010 (2006-2010), Vision 2025(2010-2025), and currently,the grouphas started implementingVision2035(2025-2035). 30. Among the strategies under the Country's vision 2035 are:- construction of Absera Airport 45 d sassd uo oi y on is yrm q e s oy m aircraft,andfourrunways.TheAirline seeks tobe the leadingcarrierinAfrica andone of the 25billion inrevenue annuallyby2035.The new facility aims toalleviatepressure onBole InternationalAirport,whichisexpectedtosoonreachitsmaximumcapacityof25million passengersannually.

b)RwandAir

• 31.RwandAir began its operations onIst December 2002.It is the national flag carrier of Rwanda and is owned by the Government.TheAirline operates fromKigali International Airport, demandandbecome theEastAfricanhubthathasseen60%ofRwandAir'strafficderivingfrom transit passengers.
• seekingtoacquire49%intheNationalAirline anda60%stakeinthenewBugeseraInternational Airport, which is under construction for approximately USD I.3 billion, expected to be completed by 2028. Once complete, the Airport will have a capacity of I4 million passengers.

3.6Legal FrameworkonTheNationalAviationPolicy

• 33.Kenya's National Aviation Policy provides a comprehensive framework to guide the s international competitiveness.

34. The Kenya Civil Aviation Authority (KCAA) is the primary body responsible for implementing and overseeing the provisions of this policy. In line with the policy's objectives, KCAA has developed the National Aviation Safety Plan(NASP) for 2023-2025,which sets out strategic priorities and safety actions incollaborationwith aviationstakeholders. 35. Through this comprehensive policy and its associated plans, Kenya aims to position itself as a regional leader inaviation,contributing significantly to economicgrowth and development. Kenya's National Aviation Policy is underpinned by a comprehensive legal framework designed toregulate and promote the country's aviation sector.The primary legislation and regulations include:

• i. Civil Aviation Act,2013 (Act No.2I of 2013):This Act serves as the cornerstone of Kenya's aviation law, providing for the control, regulation, and orderly developmentofcivilaviationinthecountry.Itestablishesthelegalbasisforaviation operations,safetyoversight,andtherolesofvariousaviationentities.
• ii. Civil Aviation (Amendment) Act, 20 I6: This amendment addresses specific gaps identified in the 2013 Act, updating provisions to align with international standards and emerging aviation trends.
• iii. Draft Civil Aviation Bill, 2024: Spearheaded by the Kenya Civil Aviation Authority (KCAA),this draft bill aims to consolidate existing laws, address currentgaps,and incorporate emerging issues such as drone regulation, environmental concerns, and enhancedsafetystandards.
• iv. Kenya Civil Aviation Regulations (KCARs): Under the authority of the Civil AviationAct,theKCAAhas developed specificregulationstogovernvarious aspects ofaviationoperations.Notableregulationsinclude:
• V. The Civil Aviation(Rules of the Air) Regulations,20l8:These regulations outline the rules to be adhered to while flying an aircraft, ensuring compliance with internationalstandards.
• vi. The Civil Aviation(Unmanned Aircraft Systems) Regulations,2020: These regulationsprovidefor the licensingofRemotePiloted Aircrafts(RPAs)and Remote
• vii. The Civil Aviation (Security) Regulations,2020:These regulations establish interference.

8. securely, and in alignment with international best practices, supporting the objectives outlined in theNationalAviationPolicy.

CHAPTERFOUR

4.OPUBLICPARTICIPATION/STAKEHOLDERSCONSULTATION

37. Following the call for memoranda from the public through the placement of advertisements in theprintmediaon14thNovember2024,videlettersRef.NA/DDC/T&l/2024/087dated10th December2024andRef:NA/DDC/T&l/2025/010dated24thFebruary,2025,theCommittee receivedsubmissionsfromthefollowingstakeholders; 2. (l) The Ministry of Roads and Transport;

• (2) Kenya Airways (KQ);

4. (3)KenyaRevenue Authority (KRA);and 5. (4)KenyaAssociationof AirOperators(KAAO);and

• (5) Mr. Mwenda Mabura, a Pilot.

7. 38.Thedetails of the submissionsarelistedbelow: 8. 4.1 Submission by the Ministry of Roads and Transport

The Cabinet Secretary for Roads and Transport, Mr. Davis Chirchir, accompanied by other officials of the Ministry, appeared before the Committee on Friday, 14th February 2025 and submitted asfollows;

• 39.TheSessionalPaperNo.6of 2024was developed as a resultof thereviewof theIntegrated National Transport Policy (INTP), which was approved by the Cabinet and the National Assembly and thereafteradoptedbytheGovernment in2012.

40. The INTP broadly covers various transport sub-sectors, including road, rail, port and maritime, civil aviation,pipeline,and inland waterways in line withKenya's Vision2030.However,it was observedthat INTPonlyprovides abroadvision for the aviationtransportsub-sector in the countrywithlimitedpolicyobjectivesandtherefore,therewasaneedtodevelopaspecific NationalAviationPolicythatclearlylaystheprinciplesthatwillunderpinthedevelopmentofa more efficient, competitive, environmentally sound, secure, safe,and economically and financially sustainable aviationsector. 41. He informed the Committee that, specifically, the review of INTP in the development of the National Aviation Policy involved civil Aviation, legal and institutional framework, and correspondingstrategic assessment,stakeholdervalidation of the draft report, and finalization.

42. The Cabinet Secretary highlighted the specific objectives of this Policy which include to foster recognizedregional leaderin aviationand toenhanceKenya'sconnectivity at anational and international level by ensuringsafe,secure andcompetitive accesswhich isresponsive to the needsofbusinesses,tourism and thepopulation. 2. 43.Henoted thattheNationalAviationPolicycommitsto: 3. a.Maintaining safety as the number one priority in Kenyan aviation and ensuring that safety regulationisrobust,effective,andefficient;

• b. efficiency, and maximum connectivity to the rest of the world while contributing to boost their financial performance;
• C. Ensuring that the regulatory framework for aviation reflects best international practices and that economic regulation facilitates continued investment in aviation infrastructure at
• d. Ensuring a high level of competition among airlines operating in Kenya aiming to benefit consumerswhileprotectingthecountry'snationalinterests;

7. Creatingconditionstoencourage thedevelopmentof newroutes andservicesat a national

• f. Developing Aviation Infrastructure, such as airports, etc.
• g. spheres;
• h. Providing an adequate environment for small airlines operating to/from Kenya's most touristicdestinations;

11. i.

• j. industry.

13. 44.TheCabinetSecretary assured the Committee that these objectives and commitments shall be translated into action through specificimplementationplans andstrategies.Henoted that the thesectorandbeingcompetitive. 14. only be achieved if the policy environment delivers its goals and the right incentives are put in placetoattractthenecessarycapital. 46. The Committee heard that the Ministry of Roads and Transport, State Department of sourced from the Exchequer, the Kenya Airports Authority, and the Kenya Civil Aviation

Authorityfrominternallygeneratedresources.ThefundingforimplementationofthePolicyas well as upgrading of JKIA will be sought and prioritized by the implementing institutions through the normal budgeting process within the available ceilings.

47. He reiterated that any form of private sector involvement willbe undertaken in line with Article 227of theConstitution,aswellasthePublicProcurementandAssetDisposalAct,20i5,and the Public Private Partnership Act, 2021, as applicable. 48. The Cabinet Secretary also submitted that the Kenya Airports Authority undertook a feasibility study onJKlA toidentify detailed technical,commercial,financial,social,and environmental aspectsof theAirporttoguideinvestmentdecision-making.Thetablebelowcontainsa summary of the Feasibility Study report

4.1.1 Salientfeaturesofthestudy

| Project | Feasibility Study for the development of a New Passenger Terminal Building and Expansion at Jomo Kenyatta International Airport (JKIA) | |------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | The Need | AgingInfrastructure Funding Capacity Constraints IncreasingDemand Modernization CompetitiveAdvantage | | DateCompleted | February16,2024 | | Study Components | s &plans and key stakeholders of the project,among others; oTechnicalSolutionOptionAnalysis-toidentifyandproposea development plan for JKlA,determine its technica!feasibility and identify its costs; ProjectDueDiligence-toassess themainlegai andenvironmental issues with regards to a future expansion at JKIA; |

| Study Findings | Based on the analysis of the procurement options and the financial assessment,theconclusionisthatanAirportPPPmodelisthe preferred option.The Airport PPP is feasible and bankable. Developingtheprojectisbeneficial forthecountry,asdevelopingthe airportoffersasocialnetpresentvalueof24IMUsDoverthe30- year period, with a benefit/cost ratio (B/C) of ~3.5. Value for Money assessment (both quantitative and qualitative) at P50 =1.7 bn USD Implementing the project under a PPP/concession adds the most value to the public sector by onboarding of efficiencies and the | |----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Key Development Highlights | transfer of the majority of the potential project risks. Development of New Passenger Terminal Building with a Capacity of 23mpassengers per annum RefurbishmentofExistingPassengerTerminal Building ■ MaintenanceandRehabilitationofExistingAirsideInfrastructure ■ Enhancement of Existing Runway with 4No. Rapid exit Taxiways ■ Developmentofa4.6kmSecondRunway ImprovementofAccessRoads Development of a parking garage of at least 3000 parking lots DevelopmentofAuxilliaryInfrastructure comprisingof: OAircraftContactStands=21 AircraftRemoteStands=20 Passenger Check-ln Counters = 64 ImmigrationCounters=72 Passenger Transfer Counters =12 O Buggage Handling Systems = I8 City SideDevelopment including: Hotels Conventioncenters Healthcarecenters Retail, office and commercial setups. ■Development of Reserved Services Facilities comprising of: AirNavigationandTrafficServices Immigration Port Health Customs KAA Facility VVIP Lounges Meteorological Quarantine Surveillance Services(SOC) O O Aeronauticalinformationservices |

ReportoftheDepartmentalCommitteeonTransport&InfrastructureonitsconsiderationofSessionalPaperNo.6of 2024ontheNationalAviationPolicy 20|Page

Communication

• 49.TheCabinetSecretary added that,following the cancellation of thePPPProposal byAdani HoldingsLimited(AAHL),acompany thathadbeenfrontedfor thedevelopmentandoperation of JKlA,andtheurgentneedtomodernizetheAirport,theGovernmentisconsideringvarious options,includingacompetitivePPPprocess.
• 50.Furthermore, he submitted detailed information on internally generated revenues and operational costs of Key Airports and Airstrips, including but not limited to; JKIA, Moi InternationalAirport,KisumuInternational AirportandEldoretInternationalAirport;

4.1.2 ChartdepictingKAA'sRevenue&OperatingExpenditureat Corporate level

KENYAAIRPORTSAUTHORITY-corporatelevel KSHSM

4.2 Submission by Kenya Airways (KQ)

51. Kenya Airways in its written submissions dated 23rd December, 2024, highlighted that the Kenyan aviation sector has been declining, characterised by the turbulence experienced by the national carrieras well asthe-loss of businessat JomoKenyattaInternational Airport(JKiA)to other competing hubs. 2. 52.TheNationalCarrierstatedthatithasbeenlosingmarketshare toitscompetitorsoverthe last couple ofyears.EthiopianAirlines (ET),whichwas slightly larger in size thanKQ in 2010, has grown exponentially in recent years and outpaced KQ three times since then. From 2015 to 2018, all competing carriers in the region increased their market share: ET by 20%, Qatar by I2%, and RwandAir by 22%,while KQ lost 4%. 3. 53.KenyaAirwayssubmittedthatKenyahasthepotential tobetheleadingregionalaviationhub because of its ideal geographical location, growing middle class, and rapidly growing economy. According to IATA, Kenya's aviation industry contributes 4.6% of the Gross Domestic Product (GDP) and supports 410,0o0 jobs.Earnings from visits to Kenya increased from Ksh.87.1B in 2014 toKsh.157.4Bin2018.Between2015 and2019,there was a steady increase in aircraft, passenger,andcargotraffic. 4. 54.It is projected that over the next 20years,theKenyan market could more than double in size, resulting in an additional 11.3 million passenger journeys, over 449,000 more jobs, and a US$ll.3billionboost toGDPby2037. JKIA is alreadyrelativelydeveloped,being the 7th busiest airportinAfrica,andwitha20-yearCompoundAnnualGrowthRate(CAGR)of4.8%, the forecast aligns with industry expectations. An enabling policy is a critical catalyst for this projected growth. 5. 55.KQfurther stated that theNational AviationPolicy shouldenablethenational aviation industry to strengthen its position in the global market. The policy should include objectives such as: 6. Kenya as a recognized regional leader in aviation.

• b) development.

8. and competitive access responsive to the needs of business, tourism, and population.

56. Concrete strategies and measures are required to realize these objectives, which include the following: 2. (a)TheNationalAviationPolicyShouldBeHingedonVision2030 3. 57.Kenya Airways,in their submission,noted that the National AviationPolicy should be aligned with the country's development blueprint, Vision 2030. The goal of Vision 2030 is to transform Kenya into a newly industrializing, middle-income country providing a high-quality life to all its citizensby2030.InfrastructureisakeypillarofVision2030,but aviationinfrastructureremains underdeveloped.The plan for JKlA under Vision2030 included reconstructing Terminal 2, 58. These projects need to be revisited and reprioritized. The national carrier and aviation infrastructure are of national strategic importance and are critical enablers of economic growth. Their expansion and modernization are now more urgent if Kenya is to keep pace with emerging trends and developments nationally, regionally, and internationally. A world-class integratedtransport system thatmeets theneedsofpeople and industry isimperative.

(b) National AviationPolicy toPositionKenya as an Aviation and Commercial Hub

59. In their submission, KQ states that the policy should lay a strong foundation for Kenya's ambition tobecome a leading aviation andcommercial hub inAfrica.Key areas thatmust be addressedinclude:

• i. Theneedfor modern,world-class international airports with no capacity constraints and a strong home-based national carrier.
• ii. Theintegrationof designatednational airlines and JKlA intoKenya'soverall economic developmentstrategy.
• imi. Full integration of air transport infrastructure withroad andrail transport systems.

5. 'A Establishment of world-class Maintenance, Repair, and Overhaul (MRO) facilities, with aviationtools andtoolkitsexemptedfromcustomsduty.

• V. Rationalization of ground handling services, limiting the number of ground handlers to threefromthecurrenteleven,tocreateahealthierbusinessenvironment.KQshould be thepreferredgroundhandlerforgovernmentflights,government-facilitatedforeign flights,andnationalcarriersunderreciprocalterms.
• vi. Developmentofstate-of-the-artaviationtrainingfacilities.
• vii. Promotionof aviationcommerce enterprisessuchasinsurancecompaniesand aircraft brokers through enablinglegislation.
• vili. Simplificationofaviationsectorrulesandprocedures.
• ix. Support for the growth of domestic aviation infrastructure and airlines by rationalizing aerodromes andmaintainingviable domesticairstripsin accordancewithcivil aviation standards.

(c) Consolidation and Integration of Aviation Assets under a Special Purpose Vehicle (SPV)

• 60.Kenya Airways,in their submission,noted that theNational Aviation Management Bill (2020) was the first major attempt in recent years to consolidate national aviation assets. The Bill proposed the establishment of the Kenya Aviation Corporation, integrating Kenya Airways, Kenya Airports Authority, and the Aviation Investment Corporation.

61. The key principles guiding this included driving effectiveness and efficiency, growth and opportunities. Although the bill was not enacted, consolidation remains critical for Kenya. KQ statesthat:

• i. Consolidation will bring significant benefits, including job creation, economic support, and tourismdevelopment.
• ii. It isaprovenmodel thathaspropelled aviationsectorsincountriessuch asEthiopia UAE, Qatar, Turkey, and Rwanda.
• ili. It presents a unique opportunity to expand aviation-related businesses and create special economic zones around JKiA.
• iv. The new entity will be a strategic national asset, supporting GDP growth while remainingfinanciallyself-sustainable.

(d) Incentivizing Growth of the National Carrier and Fleet Modernization

• it is the only privately owned and stock exchange-listed carrier among its competitors, meaning it does not benefit from airport revenues or cross-subsidies like some competitors.

63. Every time a KQ aircraft lands at a foreign airport, all charges paid to that airport reduce costs forcompeting carriers,whileKQ does notreceive similarbenefits at JKlA.KQplans to expand its fleet from 2025, increasing from 34 aircraft to over 60 within the next decade. The plan includesretiringolder aircraft and introducingnewer technologyto alignwithsustainability goals.KQwill require support to realize this strategy.

(e) Implementation of the Fly Kenya Policy

64. KQ stated that many countries designate their national carriers for government travel to support the airline and boost revenue. Countries such as the USA, UAE, India,Turkey, and China have policies requiring government employees to use their national carriers, supported by travel directives, policies, or legal frameworks like the Fly America Act.

• 65.Kenya's Fly Kenya Policy was approved in 20l6 under the Public Procurement and Asset Disposal Act,2015.However,uptake hasbeen slow,with only 34 MDAsmaintaining active accounts with KQ. The Kenyan government is the largest consumer of air travel services, Kenya Policy will provide the national carrier with guaranteed business, supporting its recovery

(f) MitigatingHighOperational Costs toEnhance Competitiveness

• 66.Kenya Airways noted that high operational costs,including fuel, handling services,and maintenance, impact its competitiveness. Fuel costs alone accounted for 41% of direct costs in 2019,risingto51%in2023.TheNationalAviationPolicyshouldintroducetaxincentivesfor aviation fuel and spare parts, establish a fuel hedging policy, and pursue reciprocal agreements in AirServiceAgreements.

(g)AviationMarketAccessFramework(AMAF)

67. KQ submits that an objective, data-driven framework for granting traffic rights is necessary. The framework should prioritize fair competition, market expansion, hub development at JKIA, andreciprocal benefitsforKenyan carriers. 68. In concluding their submission, KQ stated that with the right policies, Kenya's aviation sector can unlock economic opportunities,drive productivity,and enhance competitiveness.A synchronized aviation ecosystem, integrating airports, airlines, and auxiliary services, is essential for sustainable growth.

4.3 Submission by the Kenya Revenue Authority

69. The Kenya Revenue Authority made a written submission vide a letter dated 23rd December,

| Section | Provisionsin the Policy | Proposed amendments in the Policy | Justification | |-----------------|--------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|------------------------------------------------------------------------| | I. Introduction | Theaviationsector contributes $1.5 bn totheGross Domestic Product (GDP) comprising $740Mfromaviation itself is$515M through indirect | Update the statistics withmorerecent datawhereavailable. | Forbetter understanding of the contribution of the sectortotheeconomy. |

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| Section | Provisions in the Policy | Proposed amendments in the Policy | Justification | |---------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------| | | activities. The statisticsgivenare derived from the Aviation Benefits Beyond Borders, | | | | | September 2020. There is need to update the statistics withmorerecent datawhereavailable. | | | | | This sectoris supported by extensivenetworkof morethanfour hundred and forty (440) airports and airfields throughout the country, eighteen (18) of which are actively managed by KAA | Useadefinitenumber as thiscanbeverified andaddareference data (Base data). | For certainty | | I.I Strategic Policy Objectives | As a result, this document is intended to provide a primary... | Amend to read as follows:As a result, thisPolicydocument is intended toprovide a primary... | The document is not any other document but a policy document. | | | In particular, the National Aviation policy commits to: | Amendtoreadas follows: In particular, theGovernment through the National Aviation policy commitsto: | Commitment can only be achieved through an institutionbutnot throughthepolicyitself. | | 2.Governance | Within the Ministry, duties and responsibilities are distributed among different organizations. | Amend to read as follows:Withinthe Ministry, duties and responsibilities are distributed among | Not applicable. |

| Section | Provisions in the Policy | Proposed amendmentsin the Policy | Justification | |--------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | different organizations. | | | 3-4 Economic Regulations | Fees and charges for airports and air navigation services are published in the Aeronautical Information Publication (AIP). However,the Air Passenger Service Charge (APSC) is published in the National Primary Legislation. Despite the service being provided by Kenya Airports Authority (KAA) and Kenya Civil Aviation | Though the policy documentdoes not explicitlystate the problem that the current collection arrangement is,it is ourrecommendation thatKRAcontinues collecting revenue. | The APSC is imposed under the Air Passenger Service Charge Act cap. 475. The Act gives the Commissioner the power to collect theAPSC The Commissioner collects the Air passenger charge under the Agency arrangement. KRA has the necessary administrative structures and technological | | | Authority (KCAA), Kenya Revenue Authority (KRA) is the Government body entitled to collect it. | | solutions to collect the charge. Overthelast three financial years APSC progressively from Ksh. 8,183Bn in FY 2021/2022 to |

ReportoftheDepartmental CommitteeonTransport&Infrastructureonits consideration of Sessional PaperNo.6of 2024ontheNational AviationPolicy 28|Page

| Section | Provisionsin the Policy | Proposed amendments in the Policy | Justification | |--------------|----------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------| | | | | Ksh.16,970Bn in FY 2023/2024. | | | | Airports are | | | 4-3 Cargo | TheGovernmentwill explore and implement as appropriate, the concept of cargo villages to improve the processing of air cargo in the country. | therefore imperative for KRA to ensureproper management and operationsof these facilities Any expansion of airport infrastructure requires KRA to provide adequate support, including deploying the necessary workforce to maintain efficiency in cargo handling and clearance process. | Streamline cargo clearanceandfoster tradefacilitation | | 4-5 Taxation | Kenya's aviation system isnotbuilt as a closed-circuit and taxes have a direct | There is need to provide taxation frameworks | To support the assertion of over- taxationofthesector. |

2024ontheNationalAviationPolicy 29|Page

| Section | Provisions in the Policy | Proposed amendmentsin the Policy | Justification | |-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------| | | effect on the funding ofthedifferentcivil aviationsystem entities. Kenyan industryplayers are exposed to multiple taxes includingAPSC IDF, Import Duty, VAT, Income Tax, RDL... | for the aviation sectorsfrom other jurisdictions to support this argument. | | | | 4.5.3 Policy Statement The Government will put in place measures to continue ensuring thatKenyan designated airlines arenotsubjectedto double taxation and tofurther ensure that excessive | Exemption andincentives to be determined in consultation with National Treasury to guard against unmitigated erosionof the tax base and should be domiciled in the tax statutes. | To support the assertation ofover taxation-ofthesector. | | | taxation especially exploited onthe sale ofinternational transport is avoided orreducedtothe fullestpractical extent. | TheSector needs to propose to the National Treasury, a taxation framework thatwouldbe suitable to the sector taking intoaccount therevenue | |

ReportoftheDepartmental Committee onTransport&Infrastructureonitsconsiderationof Sessional PaperNo.6of 2024ontheNationalAviationPolicy 30|Page

| Section | Provisions in the Policy | Proposed amendments in the Policy | Justification | |-----------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | needs of the Government | | | 4-6 Maintenance and Repair Organization | In order topromote the development of the Approved Maintenance Organization (AMOs)/Maintenance and Repair Organization (MROs) industry the following initiatives should be put in place: ·Consider the introduction oftax incentivesfor maintenancerelated activities. ·Discount KCAA charges for the issuance of approvals. ·Avoid excessive taxation on imported parts and systems. | Tax incentives tobe addressed within the frameworkof the National Tax Policy to ensure alignment with national economic priorities and fiscal sustainability. Additionally, the negotiation of Bilateral Air Service Agreements (BASAs) to include representation from the National Treasury and KRA inview of tax provisions that may be contained therein. | Government recognizes the negative impact of taxincentivesonthetax base. TheNationalTaxPolicy thereforeproposesthe following to guide issuance oftax incentives: i) Review the currenttax expenditure and formulate a frameworkfor granting tax incentive, i) Developand regularly review guidelines for granting tax incentives taking into consideration the costs, benefits, promotion of investment and cushioning Kenyans against economic shocks i) comprehensively review tax |

| Section | Provisions in the Policy | Proposed amendments in the Policy | Justification | |------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------| | 5.Airports | Kenya has over four hundred and forty (440) aerodromes, comprising both state-owned and private facilities. Of the two hundred and thirty (230) public aerodromes, only eighteen (18) are actively staffed and managed by the Kenya Airports Authority (KAA). However,the maintenance, operational responsibilities and mechanisms for managing the remaining public | Provide how the other public aerodromes would be maintained and operated. | This will provide certainty on the maintenance and operational responsibility of the said public aerodromes. | | 5.Airports | aerodromesremain unclear. | | |

70. In concluding their submission, the Authority acknowledges the critical role of the aviation sectorineconomicdevelopmentandtradefacilitationandnoted thatitiscommittedto supporting theimplementationof theserecommendations andanyother,tocreate aconducive environmentforgrowthandcompliance.

4.4Submission byKenyaAssociationof Air Operators

71. The Kenya Association of Air Operators (KAAO) submitted its comments on the Policy on 20t December, 2024, and noted that the Association has been at the forefront of advocating

for Kenya to develop and implement a National Aviation Policy, and they lauded the Cabinet for approving thepolicy onIIth June2024.

72. In their submission, they stated that they held various workshop forums with members and stakeholderstoreviewthedraftpolicy andsubmittedfeedbacktotheMinistryof Transport on 25th November 2022,with comments from over 40 representatives of various aviation-related associations and experts. A second engagement occurred on 29th November 2022 to review therecommendationsandafinaldraftwaspresentedtoKAAOanditsmembershipon20th December2022.KAAOsubsequentlysubmittedfeedbackto theMinistryof Transporton28th December 2022. KAAO states that the final policy has considered a majority of their previous recommendations. 2. S s s s projectedaviationgrowthinthenext30years,theneedtocapitalizeonKenya'spositionasa gateway into East and Central Africa, and the strong post-COviD recovery in passenger numbers. They emphasized that Kenya's aviation sector is a key growth node for the economy. 3. 74.KAAO also pointed out that the policy should address the intermodal relationships between tourism and trade, which have existing policies. 75. To fully capitalize on growth, KAAO submitted that the policy should define clear timelines, benchmarks for implementation, including meeting ICAO standards and a monitoringframework.They added that theroleof keystakeholdersmustbemapped.

76. The operators made the following Specific Observations

| | No.Observations | Comments/proposed amendments | |----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------| | I. | Regulation&Sustainability ·We need clarity on definitions for different to be included players in the industry i.e., Recreational Flying, GeneralAviation,Commercial operationswhich wouldthenhelptodefinetheregulations applicabletothem. Documentshoulddetail theneedtodevelop separatesetofregulationsforGeneralAviation/ Commercial Aviation,Domestic/lnternational operations. Policy should define a pathway to self-regulation on | Recommendedforadoption |

2024ontheNationalAviationPolicy 32|Page

| | arisk-basedapproachduetocapacitychallenges with the Regulator. | | |----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------| | 2. | Security The policy should detailmeasurementsand threats such as cyber threats procedures against new emerging threats such as orbiological threatslike the cyber-attacks or biological threats suchas re-Covid- emergence of Covid-19. | Need to capture emerging 19. | | 3. | Environment&Sustainability Developmentofthefullframeworkofthedraft CivilAviation(Carbonoffsetting &reduction schemeforInternationalAviation)Regs,2022to include the legislative and regulatory provisions, policies, adequate financial resource allocation, qualified personnel, and procedures (roadmap, timelines). Thepolicystatementontheuseofthenext generation of aircraft, SAF, and engines should beexplicit aroundtheneedforanincentive regime for transition. | Need for the Carbon offsetting&reduction scheme for International Aviation Regulations, 2024 to be promulgated. | | 4. | EconomicRegulations No clarity on criteria of private operators, balloon operations, helicopter operators Rules | Recommendedforadoption | | | ThePolicystatementshould includestakeholder consultationin the review of aviation charges (in line withInternational bestpractices). | Needtobeincluded in Policy statement |

| 5. | Governance The Policy lists Kenya ashaving only Il other AOCAmend to capture accurate holders other than Kenya Airways.Kenya has 80 AOC holders andseveral designated national carriers. Moderninstitutionalframeworksshouldassure completeindependence of the accident and incidents investigation body (AAID),by placing it onan independentboardreportingdirectlytoeitherthe president or the parliament, bypassing any other ministry or public body. This is the only effective way to guarantee the impartial opinion of the investigators, independent from any decision that could affect another bodywithin thegovernment apparatus. The policy does not detail the governance of ground handlers | data should be adopted Groundhandlersare regulated entities andthe policy should include theirgovernancestructures | |------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------| | 6. | AirTransportMarket ePolicystatementshoulddetailGovernment'sfocuson gional(EAC)aviationintegrationfirst as wemove wardsimplementationofSAATM. | Tobe includedin the Policy statement. | | 9. | Regional andGeneral Aviation · There is a need for a proper definition of this category the Policy statement. in the policy. ·Governmentshouldensurethatthereisequitable access around regulations,taxes and incentives to encourage the growth of general aviation. | Tobe included in | | II. | Taxation The matters under critical issues at4.5.2werepartly addressed in theFinanceBill 2023.There is a need however,to embed a taxpolicy statement for the sectorinlinewithICAOrecommendationsontaxes and charges on aviation. | Policystatementshould includetaxpolicystatement. |

4.5 Submission Mr. Mwenda Mabura, a Pilot

77. Mr. Mwendwa Mabura is a pilot and made his submissions on the Sessional paper on 4th December,2024.He submitted asfollows:

78. Kenya Airways has reported successive losses in the past ten years. He noted that the challenges faced by the National Carrier include leadership challenges,conflict of interest, operational inefficiencies, and inadequate customer service. 79. Mr. Mabura proposed the following measures to enable KQ in its recovery plan:

• D) Revamped Leadership-a newleadership team at theBoard andSenior management level. The Company Board of Aviation professionals, other than investors only;

4. ii)Operational Efficiency- there is a need to review cost drivers at the Airline. Further, the procurement processes should be based on objective decision-making criteria while balancing competition, transparency and integrity; 5. iiRe-organization of the Airline's fleet to one manufacturer will reduce lease rates, costofspareparts andeaseofmaintenance;and 6. iv)Financial bailouts toprovide a financial cushion-he proposed theuse of a Diaspora Dollar infrastructure bond, also a local currency one, as a financing option to revamp KQ's operations. These can be issued to the Kenyan diaspora, pension funds and local funds to fund theproposedexpansionof JKIA andrevampKQ

CHAPTERFIVE

5.OCOMMITTEEOBSERVATIONS

• received,madethefollowingobservations;
• The Policy covers the country's integrated transport system, including the six transport subsectors:road,rail,port and maritime,aviation,pipeline,and inlandwater.However,thePolicy onlyprovidesabroadvisionfortheaviationtransportsub-sectorwithlimitedpolicy objectives.Following areviewof thePolicy,theNational AviationPolicywas developed to address the gap and to provide a comprehensive framework to guide the development and regulation of thecountry's aviationsector.
• (l) The Cabinet on lith June 2024, considered and approved the JKIA Medium Term Investment Plan' that includes the upgrade of the passenger terminal, runway, taxiway, apron, and airside facilities in keeping with the global aviation trends. The Plan, seeks to demand,which is estimated to rise to 42.I million passengers a year by2050.
• (2) The National Carrier (KQ) has experienced declining market share and increased Ethiopian Airlines (ET), which was slightly larger in size than KQ in 20l0, has grown exponentially in recentyears andoutpacedKQthree times since then.From2015to2018 allcompetingcarriersin theregionincreased theirmarket share:EthiopianAirlines by20%, Qatarby12%,andRwandAirby22%,all whileKQlost4%.Kenya aspirestobeone of Africa's leadingaviationeconomies.ThiswillonlybeachievedifthePolicyenvironmentmeetsits goals and provides the right incentives to attract the necessary capital.
• (3)Policyandregulatoryshortcomingsduetotheabsenceofanenablingandsynchronised national aviation policy have hindered sector growth and competitiveness. In addition, the slow implementation of supportive policies like the Fly Kenya Policy has limited the national
• 4.6% to GDP and supports about 410,0o0 jobs, with tourism earnings rising substantially; and
• (5) Despite being the 7th busiest airport in Africa,JomoKenyatta International Airport (JKIA) faces infrastructurelimitations.Key projects under Vision 2030 are either incomplete or delayed. The Airport therefore needs modern, world-class airport facilities, along with better integration with other transport modes.

CHAPTERSIX

6.0COMMITTEERECOMMENDATIONS

• 80.TheCommittee,havinghad engagementswith stakeholders and havingconsidered submissions received,makesthefollowingrecommendations:THAT-
• (1)TheHouseadoptsthisreportandapprovesSessional PaperNo.6of2024ontheNational Aviation Policy;
• (2)Following the adoptionof thisPolicy,all proposed legislation on aviation-related matters shouldbeguidedbytheprovisionsofthisPolicy.

SIGNED....

.DATE..

HON.GKGEORGEKARIUKI,CBS,M.P.

CHAIRPERSON,DEPARTMENTALCOMMITTEEONTRANSPORTAND INFRASTRUCTURE