Kenya has enacted the Air Passenger Service Charge (Amendment) Act, 2026, introducing changes to how the government administers, distributes, and remits revenue collected through the Air Passenger Service Charge.
The amendment is significant for the aviation and travel industry, but does not increase the statutory passenger service charge payable by travelers.
The legislation focuses on how the charge collected from passengers is distributed among agencies that benefit from the revenue. The revised framework provides for the collected funds to be remitted to designated beneficiaries, including the Kenya Airports Authority (KAA), Kenya Civil Aviation Authority (KCAA), Kenya Meteorological Services Authority and Tourism Fund.
The changes aim to establish a clearer framework for the flow of revenue collected through the passenger service charge, including remittance to the respective institutions.
No change to passenger charge rates
The enactment has attracted attention in the travel industry after reports said the amendment would increase charges paid by passengers departing from Kenya.
Some early reports indicated that the international passenger service charge would rise from USD 40 to USD 50, while the domestic charge would increase from KES 500 to KES 600.
However, examination of the enacted legislation indicates that the rates themselves have not been amended.
The amendment therefore should not be interpreted as introducing an immediate increase in the amount charged to passengers. The changes contained in the legislation relate primarily to the allocation and remittance of the revenue, rather than the statutory rates.
This distinction is particularly important for travel agents, airlines, and other businesses involved in selling and issuing air tickets, where any change in statutory charges can directly affect ticket pricing and customer communication.
Implications for travel agents
For travel agents, the amendment does not, by itself, require agents to apply higher Air Passenger Service Charge rates.
Agents should therefore exercise caution when communicating the development to clients or incorporating any new charge into ticket quotations. A reported change in the law should not automatically be treated as a change in the amount payable by passengers.
Any amendment to the applicable passenger service charge rates must be formally effected through the appropriate legal and regulatory process.
The distinction also matters when explaining ticket costs to travelers. Where passengers have seen reports of a possible increase, agents can clarify that the newly enacted amendment concerns the administration and distribution of the existing charge, and not an increase in the statutory rate.
Revised revenue distribution framework
Under the amended framework, revenue generated from the Air Passenger Service Charge will continue to support key institutions within Kenya’s aviation, tourism and related sectors. At the same time, the legislation provides for how the proceeds are to be remitted to the respective beneficiaries.
The beneficiaries include institutions responsible for airport infrastructure and operations, civil aviation regulation, meteorological services and tourism development.
The change therefore has implications beyond ticketing, particularly for the institutions that rely on passenger service charge revenues to support their respective mandates.
The amendment provides a revised mechanism for ensuring that the funds collected are distributed to the designated beneficiaries in accordance with the law.
Industry urged to distinguish between rate and administration
The development highlights the importance of distinguishing between a change to the passenger service charge rate and a change to the way the existing charge is administered or distributed.
While both may arise through amendments to the same legislation, they have different implications for passengers and the travel trade.
In this case, the enacted amendment changes the revenue framework without changing the statutory amount passengers must pay.
Travel agents and other industry stakeholders should therefore rely on formal regulatory communication when deciding whether to reflect any new passenger charge in fares, quotations, or customer invoices.
