KEPSA formulates plan to boost aviation sector

There’s a need for a substantive legislative framework to cushion the country during the Covid-19 pandemic. _Hon. Senator Sylvia Kasanga
There’s a need for a substantive legislative framework to cushion the country during the Covid-19 pandemic. _Hon. Senator Sylvia Kasanga

The Kenya Private Sector Alliance (KEPSA) led discussions amongst stakeholders in the aviation sector both in government and private sector, to explore initiatives to spur the economy and revamp the aviation sector that has been adversely affected by the COVID-19 pandemic. – By Enock Mukoma

The high-level stakeholder engagement was a precursor to the National Aviation Conference to be held in the first quarter of 2021.

The meeting brought together leaders from the Senate, Ministry of Transport & Infrastructure, and Kenya Airports Authority; together with stakeholders from the aviation industry such as Kenya Airways, the Kenya Airline Pilots Association, and Kenya Association of Travel Agents.

The focus was to start a discussion on the impact of Covid-19 on the aviation sector and allied businesses, and come up with proposals to mitigate the damage.

KEPSA Deputy CEO Martha Cheruto said that the Covid-19 pandemic has affected business globally with aviation being among the worst affected sectors.

“We hope that from today’s deliberations, we can delve specifically into how these issues manifest in the aviation sector, how they can be mitigated, what policy and regulatory interventions can be introduced to cushion businesses in the sector and increase efficiency in operations” Ms. Cheruto said.

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As the apex body of the private sector, KEPSA is committed to bringing the business community together, including the aviation industry, to engage and influence public policy for an enabling business environment.

Aviation A Logistics powerhouse

She added that the Aviation Sector plays a key role in economic growth and development as a logistics powerhouse, and revenue generator for Kenya and the region due to its linkages with various sectors.  

He noted that a financial outlook released in June 2020 by International Air Transport Association (IATA) estimated that revenues for airlines globally could fall by 50% to $419 billion from $838 billion in 2019.

IATA also noted that in Africa alone, the GDP supported by aviation was estimated to fall by up to $35 billion with over 3.5 million job losses estimated in August 2020. Locally, IATA estimated 223,600 jobs were at risk with GDP losses of up to $1.8 billion.

Kenya Association of Airline Pilots General Secretary Capt. Murithi Nyagah stated that despite passenger travel being hit hard, cargo is still doing well.

 “We need a strategy to be able to continue operating and grow the business even as the pandemic continues raging on within,” Captain Nyagah said.

On his part, the Kenya Airways Head of Regulatory Affairs, Dalmas Okendo, noted that the Aviation sector was already struggling way before the pandemic struck, and as such the pandemic has only pronounced the situation.

He added that going forward, Kenya Airways will focus on the health and safety of staff and clients, and network rationalization.

Tourism Worst Hit

The CEO of Kenya Tourism Federation, Ms. Susan Ongalo, submitted that the Tourism industry was among the worst hit by the pandemic, leading to massive job losses and the closing of businesses in the tourism sector.

She appreciated that domestic tourism has been picking up steadily after the reopening of domestic airspace in mid-July 2020, and a notable influx of foreign tourists into Kenya after the resumption of international flights.

“To boost tourism, Kenya should adopt rapid testing on-site at an affordable rate and consider the further opening of the skies to increase Tourism,” Ms. Ongalo said.

The event was graced by Hon. Senator Sylvia Kasang who Chairs the Senate Ad-hoc committee on the Covid-19 situation in Kenya. She stated that there is indeed a need for a substantive legislative framework to cushion the country during the Covid-19 pandemic.

The Pandemic Response and Management Bill 2020 which attempts to introduce a legislative framework has been deliberated upon by the Senate, and referred to the National Assembly where it is still undergoing concurrence.

Senator Kasanga noted that there was a National Aviation Management Bill 2020 before the National Assembly, which is yet to be forwarded to Senate. She was emphatic that once the Bill was presented to Senate, Senate would ensure that it safeguards the best interests of the Kenya Airports Authority, Kenya Airways and private sector aviation players.