KAA Revenue Share From Kenya Airways Disputed Amid Government Deal Push

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Nyakundi Report

Newsroom 1 min read

The proposed merger of the Kenya Airports Authority (KAA) and Kenya Airways (KQ) to manage Jomo Kenyatta International Airport faces growing resistance from parliament and industry stakeholders. The Public Investment Committee has paused the process for review, while the Kenya Aviation Workers Union has filed a court petition to block the plan. Deputy President William Ruto defended the deal as essential for KQ's survival, claiming 70% of KAA's revenue comes from the airline.

Financial records challenge this assertion. KAA's 2016 financial statements show Sh13.48 billion in revenue and Sh2.59 billion in pre-tax profit, with 8.6 million passengers and 253,569 aircraft movements across its network during the 2016/2017 financial year. KQ's 2016 data reports 4.2 million passengers and 66,557 tonnes of cargo, indicating its contribution to KAA revenue ranges between 25% and 50%. The authority collects fees from multiple sources, including landing, parking, and security charges, rather than relying solely on KQ.

The Kenya National Bureau of Statistics and KAA's charge schedules corroborate the lower revenue dependency figure, raising questions about the justification for the restructuring. KAA's 2016/2017 data shows it handled 254,000 tonnes of cargo and 9.46 million passengers, further demonstrating its diversified revenue streams.

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