This archive report was first published on 8 June 2020.
On June 8, 2020, the Kenya Association of Travel Agents (KATA) announced plans to adopt a policy that will see travel agents cease extending credit facilities for travel to their customers.
According to Dr. Joseph Kithitu, Treasurer of KATA's Board of Directors, this policy will ensure that travel agents deal with cash-paying clients and remain operational in times of crisis.
“Travel post-pandemic needs to be on cash basis. KATA is working with TRA on setting up frameworks that will see travel agents pay in cash,” Dr. Kithitu said.
Travel agents have undergone a traumatic period brought on by the pandemic, with many businesses closing down and staff being let go due to lack of payment from clients.
Dr. Kithitu noted that business during this period is made harder by the fact that airlines are not refunding travel agents for travel that was already booked during the Coronavirus period.
With no credit extended to clients, travel agents will be able to align their businesses to deal with the new normal, even if it means reducing volumes.
Since the first case of infection was reported in the country in March, business has dropped to a negative for travel agents, with the government announcing travel restrictions within the country and a ban on international flights.
