AFRAA Secretary General highlights EU learnings at SAATM meet.

Abderahmane Berthé, Secretary General, African Airlines Association (AFRAA) intervened in a panel session during the Connecting Europe Days on the Single African Air Transport Market (SAATM) on lessons learnt from the air transport liberalisation in the European Union (EU) that can be useful for SAATM.

“The air transport market in Africa is relatively small, we have seen some protectionism attitudes aiming to protect national carriers,” said Berthé. “Of course, this is a wrong approach because, by nature, traffic rights are reciprocal. It is therefore critical to increase the market size and facilitate its access. “To achieve this, the following need to be addressed: *Affordability of air transport for African citizens: reduce the cost of operations and taxes and charges. *African economy growth: GDP per capita (only 15% of global GDP per capita).

Trade and tourism development: Intra-Africa trade is below 20 percent compared to more than 50% in other regions. Intra-Africa tourism is very small. In Africa when we talk about tourism, we are looking at tourism from non-African regions. *Facilitation of air travel through visa openness is also critical. 50 percent of African citizens need a visa to travel within Africa.

Airlines’ cooperation: commercial agreements and partnerships are essential to improve connectivity. AFRAA route network and cargo coordination is aimed at creating a forum for airlines to cooperate. Another success factor is airline consolidation. Over the past 18 years, the African continent has had the lowest level of market consolidation compared to the other regions in the globe.

The engagement of states, airlines and all the relevant stakeholders is necessary to effectively achieve the required outcomes on airline consolidation in Africa.” The session looked into SAATM as a key to open the door for aviation to play a major role in connecting Africa, promoting its social, economic and political integration and boosting intra-Africa trade and tourism. The event was organised by the European Commission together with the Belgian Presidency of the Council in Brussels.

Source: Logistics Update Africa

CS Mutua Kick Starts Activities to Rejuvenate Tourism Sector.

Tourism and Wildlife Cabinet Secretary Alfred Mutua has launched activities that could revive the tourism industry to contribute immensely to the national economy.

Dr Mutua is spearheading a countrywide campaign dubbed “Utalii Fresh,” a strategic roadmap that seeks to uncover Kenya’s hidden tourism treasures and move the sector to the next level.

Speaking in Kwale County, the CS says his ministry is collaborating with the 47 devolved governments in the development of their rich tourism destinations and potentials.

Dr Mutua says his ministry is determined to revitalise the country’s tourism industry by investing in critical infrastructure like access roads, installing solar lighting along the beaches and strategic marketing to attract high spending tourists.

He says the campaign seeks to turn the tourism potentials in the counties into reality and promote tourism as a major foreign exchange earner and create jobs.

The CS was in Kwale County for his #UtaliiFresh county tours and announced that his visits will explore potential collaborations and partnerships to ensure that counties benefit from tourism opportunities.

He noted that Kenya has a strong comparative advantage in the hospitality and tourism sector because of its diverse cultural heritage.

CS Mutua termed the #UtaliiFresh campaign as a recipe for reviving sustainable and responsible tourism and repositioning it as a key sector in the national economy.

He says his vision is to unlock the untapped tourism potential of every corner of the country and take development to the grassroots.

“All around the world tourism plays an important role in the preservation and promotion of culture and heritage,” he said, adding that efforts would be made to ensure heritage sites and monuments throughout the country are preserved.

The CS accompanied by Governor Fatuma Achani visited a number of sites that the county intends to develop into attractive tourists’ sites in Diani.

Diani beach is the preferred holiday destination for both domestic and foreign tourists and each year it receives a record number of holidaymakers arriving to savour its beautiful scenery.

The resort town of Diani with its clear blue water and white sandy beaches have seen the South Coast town voted the best destination beach in Africa for six years in a row by the World Travel Awards.

The minister also held talks with tourism stakeholders and investors who presented their views on the challenges and opportunities in the tour, travel and hospitality sector.

Dr Mutua is asking the county governments to develop cultural experiences that would not only attract tourists but also benefit local economies and empower communities.

The Tourism CS says he has agreed with the Kwale County leadership on several initiatives aimed at enhancing the coastal county’s tourism sector.

“Key commitments include supporting the rehabilitation of the Diani tourist market and the construction of the Kwale Heritage and Convention Centre,” he said.

He also announced the establishment of a modern recreation facility along the historic Kongo beach blending preservation of the area’s history with contemporary amenities.

Dr Mutua says Kongo Beach is renowned for its potential in Halal (Shariah compliant) Tourism development and noted that the government sees a potential market of foreign Muslim travelers, especially from the Middle East.

He says the national government has set its eyes on the Arabian travel markets as an important growth area for the coastal counties of Mombasa, Kwale, Kilifi and Lamu tourism sector.

Mutua said the government will take steps to get a slice of the growing Muslim tourism market by participating in the Arabian Travel Markets.

He said Muslim customers from the United Arab Emirates, Saudi Arabia, Egypt, Morocco, Oman, Iran and Turkey specifically look for tour packages that can guarantee them to perform prayer five times a day during travel.

Mutua also noted that in terms of food, they demand products that only use halal materials and are processed in compliance with Islamic rules.

Governor Achani says the devolved unit will set up a state-of-the-art conference facility in Diani and has already allocated Sh 40 million for the development of the necessary public services and utilities.

“Our discussions focused on strategies on possible partnership areas between the Kwale County government and the ministry of tourism to grow and bolster the tourism numbers in our county,” she said.

She says the national government needs to partner with devolved governments and other stakeholders if the tourism industry is to be properly harnessed.

The coastal county boss says Kwale will reposition itself as a top Halal friendly destination as the hospitality industry already has outstanding halal tourism infrastructure to cater for the Muslim travelers.

“As a Muslim it’s important to ensure that your travel arrangements including food and accommodation are Halal especially if you intend on travelling during the Muslim holiday seasons,” she said.

She urged stakeholders to offer tour packages with extended services such as allocating times for praying in the itinerary of Muslim tourists and offering halal food.

Source: Kenya News

Kenya received 460,000 more tourists in 2023.

Kenya’s 2023 tourism arrivals grew by more than 460,000 in the period to December, marking the third consecutive growth since 2021 when the numbers started rising.

The annual tourism sector performance report shows arrivals rose from 1,483,752 in 2022 to 1,951,185 in 2023, a 31.5 percent increase.

This is however way less compared to the previous year (2021-2022) when the numbers grew by about 71 per cent.

August recorded the highest number of visitors at 11 per cent of the total arrivals, attributed to the wildebeest migration experience in Maasai Mara around late July to August.

The growth is attributed to the good value for money perception by tourists, implying their belief in the country to offer quality experiences, services and attractions relative to the cost of their travel.

“Affordability of travel in Kenya is also a significant factor influencing the increase in tourist numbers,” the report reads.

The arrivals are attributed to the country’s positioning as a safe destination which is crucial in attracting tourists.

The perception according to the report may result from effective safety measures, low crime rates in tourist areas and the country’s commitment to providing a secure environment for visitors.

Jomo Kenyatta International Airport  registered the highest number, at 69 per cent of the total arrivals followed by Mombasa International Airport at eight per cent.

Most tourists using the road as mode of transport came through Busia Border, at eight per cent of the total arrivals, followed by Namanga Border at six per cent and Malaba at two per cent.

A total of 4,000 visitors used water as a mode of transport through Kilindini Seaport, Shimoni Seaport and Kisumu Pier.

USA was the top source market in the period under review with 265,310 tourists, which was 14 per cent of the total, surpassing the 2019 mark when it yielded 245,437 arrivals.

Uganda, Tanzania and the United Kingdom had  10, 8, and 8 per cent market shares, respectively.

Worth noting, is the Uganda market performance, whose extent of recovery was at 90 per cent, having yielded Kenya 223,010 arrivals in 2019.

The other source markets with a notable number of visitor arrivals were India, Germany, Italy, China, Somalia and Rwanda.

“A total of 13 of the 30 top market performers were from Africa which together had a share of 60 per cent of the total,” the report reads.

Holiday was the top reason why most travellers visited Kenya in the period under review, at 45 per cent.

It was followed by those visiting friends and relatives, at 24 per cent of the total.

Arrivals on business and MICE came at a close third with 24 per cent of the total visitation.

There was also a good number of visitors for other purposes such as religion, education, medical, employment and sporting activities.

Additionally, five per cent were visitors who entered the country while on transit to their final destinations.

Source: The-Star

Dubai sees 18 percent rise in overnight visitors to 3.67 million in first two months of 2024.

The latest figures from the Dubai Department of Economy and Tourism (DET) revealed an annual increase of 18 percent in the number of visitors in the first two months of 2024. During January and February, Dubai received 3.67 million visitors, with 1.77 million visitors in January and 1.9 million visitors in February.

Origin of visitors

Western Europe was at the forefront of visitors to Dubai in the two months. Tourists from Western Europe constituted 21 percent of the total number of visitors to Dubai, or about 773,000 tourists. South Asia followed with 604,000 visitors, constituting 17 percent of the total number of tourists. Then came the Gulf Cooperation Council countries with 549,000 visitors, constituting 15 percent of the total.

Russia, the Commonwealth of Independent States and Eastern Europe ranked fourth, with 530,000 visitors, constituting 14 percent of the total number of tourists in Dubai. In fifth place, visitors from the Middle East and North Africa reached 448,000, constituting 12 percent of the total. Meanwhile, visitors from North and Southeast Asia recorded a share of 9 percent or about 340,000 visitors in Dubai.

The number of tourists arriving to Dubai from the Americas reached 240,000, making up 7 percent of the total. Meanwhile, the number of visitors from Africa reached 138,000, or about 4 percent of the total. Moreover, 53,000 visitors from Australia came to Dubai in January and February, making up about 1 percent of the total.

Hospitality sector surges

By the end of February, the number of hotel rooms in Dubai reached 151,269 in 826 establishments, compared to 148,450 rooms in 813 establishments by the end of February 2023. The average hotel occupancy in Dubai reached 87.1 percent, compared to 84.4 percent during the first two months of 2023. Meanwhile, the number of rooms booked exceeded 7.78 million, compared to about 7.28 million rooms during the first two months of 2023. Besides, the average length of stays reached 3.8 hotel nights during January and February 2024.

Notably, the number of 5-star hotel rooms in Dubai reached 52,118 in 161 establishments, accounting for 35 percent of the total number of hotel rooms. Meanwhile, the number of 4-star rooms reached 43,792 in 197 establishments, and the number of one- and three-star hotel rooms reached 29,037 in 275 establishments. The number of luxury hotel apartment rooms reached 13,764, and the number of medium-level hotel apartment rooms reached 12,558.

During the first two months of 2024, the average daily price of a hotel room in Dubai reached AED664, a 9 percent increase compared to AED609 during the corresponding period of 2023. Meanwhile, the average revenue from available rooms reached AED578, a 12 percent increase compared to AED514 in the first two months of 2023.

Source: Economy Middle East.

Air Cargo Demand Maintains Double-Digit Growth

The International Air Transport Association (IATA) released data for February 2024 global air cargo markets showing continuing strong annual growth in demand.

•    Total demand, measured in cargo tonne-kilometers (CTKs*), rose by 11.9% compared to February 2023 levels (12.4% for international operations). This is the third consecutive month of double-digit year-on-year demand growth.

•    Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 13.4% compared to February 2023 (16.0% for international operations). This was largely related to the increase in international belly capacity accompanying growth in passenger markets (29.5% year-on-year increase), which far exceeded international capacity on freighters (3.2% year-on-year increase).

“February’s demand growth of 11.9% far outpaced the 0.9% expansion in cross-border trade. This strong start for 2024 could see demand surpass the exceptionally high levels of early 2022. It also shows air cargo’s strong resilience in the face of continuing political and economic uncertainties,” said Willie Walsh, IATA’s Director General.

Several factors in the operating environment should be noted:

•    Global cross-border trade increased by 0.9% in January.

•    In February, the manufacturing output Purchasing Managers’ Index (PMI) climbed to 51.2, indicating expansion. The new export orders PMI also rose to 49.4, remaining slightly below the 50 threshold that would indicate growth.

•    February year-on-year inflation dropped to 2.8% in the EU while rising to 2.8% and 3.2% in Japan and the US respectively.  After four months of deflation, China reported a 0.7% increase in inflation year-on-year—a positive development amid concerns over China’s economic slowdown.

February Regional Performance

Asia-Pacific airlines saw 11.9% year-on-year demand growth for air cargo in February. This was a significant decrease compared to January’s 24.3% year-on-year growth, likely related to slowing activity after the Lunar New Year celebrations. Capacity increased by 23.1% year-on-year as belly capacity came online with recovery in the passenger business.

North American carriers saw 4.2% year-on-year demand growth for air cargo in February—the weakest among all regions. Demand on the North America–Europe trade lane grew by 5.2% year-on-year while Asia–North America grew by 3.9% year-on-year.  February capacity increased by 1.9% year-on-year.

European carriers saw 14.6% year-on-year demand growth for air cargo in February. Intra-European air cargo rose by 24.5% year-on-year—the strongest performance in almost three years. Europe – Middle East routes saw demand grow by 39.3% year-on-year, while Europe – North America expanded by 5.2% year-on-year.  February capacity increased 13.2% year-on-year.

Middle Eastern carriers saw 20.9% year-on-year demand growth for air cargo in February.  The Middle East–Europe market was the strongest performing with +39.3% growth, far ahead of Middle East-Asia which grew by 21.9% year-on-year. February capacity increased 16.2% year-on-year.

Latin American carriers saw 13.7% year-on-year demand growth for air cargo in February.  Capacity increased 8.9% year-on-year.

African airlines saw 22.0% year-on-year demand growth for air cargo in February—the strongest among all regions. The intra-Africa trade lane showed 42.3% year-on-year growth. February capacity increased by 28.2% year-on-year.

Source: Airspace-Africa.

Transport Ministry mulls fund to expand, spruce up airstrips.

The government plans to start sprucing up airstrips across the country, many of them dilapidated after years of neglect, in what it said would help grow local air travel.

The Transport ministry yesterday said it is in the process of setting up a kitty that will be used in the development and maintenance of airstrips.

“To expand air travel and make it more accessible, the government is working on an Airstrips Fund for developing and maintaining aerodromes across the country,” said Transport Cabinet Secretary Kipchumba Murkomen at a ceremony to celebrate the tenth anniversary of low-cost carrier Jambojet.

He said air travel is not and need not be a luxury. “Flights facilitate faster connectivity, which is critical for business and emergency supplies. We will continue improving connectivity to various destinations and we have airlines such as Jambojet to thank for making it cheaper to fly.”

The ministry had earlier said it will spend nearly Sh1 billion over the current financial year in expanding and rehabilitating airstrips to make them accessible to aircrafts as well as equipping them to handle more cargo and passengers.

Mr Murkomen lauded Jambojet as among the airlines that have played a key role in opening up the local skies, increasing the number of flights between Nairobi and other cities and major towns and also bringing down the cost of flying.

“Ten years ago, it cost an arm and a leg to fly from Nairobi to Kisumu or Mombasa. Today, thanks to low-cost airlines like Jambojet, the cost of travel between these cities has dropped dramatically, cumulatively saving leisure and business travellers and companies millions of shillings,” he said “Budget airlines also offer small businesses an opportunity to transport their goods to markets in far-away destinations, thus expanding their reach.

“It is the intention of the government to demystify air travel to ensure that we enable business people to move from one corner of Kenya to another more conveniently in order to multiply their opportunities.”

Jambojet said it is planning to increase its flights to regional destinations. The airline, which has largely focused on local routes, yesterday announced that it would start flights between Mombasa and Zanzibar in July this year.

This will be the second regional flight after Nairobi-Goma, in Eastern Democratic Republic of Congo, a route it started plying in 2021.

“On July 1, 2024, we are excited to inaugurate a new route connecting Mombasa and Zanzibar, further enhancing connectivity between these two coastal cities,” said Jambojet chief executive Karanja Ndegwa.

“We have developed a network that offers flexibility and convenience for travellers at an affordable price.”

Mr Ndegwa said the airline’s market share stood at 33 per cent in 2014 but had grown to 52 per cent as at December last year.

Jambojet chairman Vincent Rague said the airliner plans to emerge as a formidable low-cost carrier in the region.

“Our dream for the next decade of Jambojet is to achieve sustainable growth by consolidating the LCC (low cost carrier) model in the domestic market and connecting the highly underserved markets in the region,” he said.

The airline said it has flown seven million customers since it began operations in April 2014, with 1.2 million of those in 2023 alone.

Currently, it flies from Nairobi to Mombasa, Kisumu, Eldoret, Malindi, Ukunda (Diani), Lamu and Goma.

The carrier recently added Moi International Airport in Mombasa as a secondary hub in addition to JKIA and operates two routes from Mombasa to both Kisumu and Eldoret.

Source: Standard Media

African Airlines Show Impressive 20.7% Increase In Year-On-Year International Traffic

Airlines across Africa are reaping the rewards of increased demand, with the International Air Transport Association (IATA) reporting an increase of 20.7% in passenger traffic compared to this time last year. The collection of carriers includes, but is not limited to, Kenya Airways, Ethiopian Airlines, Egyptair, Royal Air Maroc, and Air Senegal.

African Airlines are surging forward with the expansion, which has seen capacity grow by 22.1% yearly, catapulting the continent’s aviation scene into a new realm. The growth has been expected as the world continues its post-pandemic thaw, and Africa’s numbers add to the 5.7% global increase in passenger numbers seen in February this year.

While demand and capacity are up, there is a slight increase in overall load factors across Africa, with a slight decrease in numbers seeing the region reach just 74%, a drop compared to the previous year.

Optimistic for the region

The ex-International Airlines Group boss and now IATA’s Director General Willie Walsh remains optimistic about travel across Africa. Walsh reiterates the positive momentum the region is seeing. Growth will be expected as more people look to travel, plus accelerated investment in airports and airlines and ‘resilient passenger demand’, as noted by Nairametrics.

Walsh did, however, clarify that the continued imposition of new taxes across Europe could be detrimental to growth not just in Africa but across the aviation industry and could lead to increases in airline ticket costs.

The numbers

Across Africa, domestic operations surpassed 13.7% growth compared to pre-pandemic levels, and between 2023 and 2024, there were 15% more operations. This was driven by strong demand over the Lunar New Year Period (however, it remains in the shadows compared to China during this time, which saw an increase of 31.5%).

When compared to February 2019, an increase of 0.9% was seen, with annual growth for international operations reaching over 26.3%. Operations towards Asia and the Pacific led the spike, with demand for travel between those regions and Africa witnessing demand surpassing 53.2%. For those destined for South America, growth between Africa and the likes of Sao Paulo contributed to a 21% increase in travel between the two continents.

Africa’s largest airline

Ethiopian Airlines maintains its status as the continent’s largest airline from its base at Addis Ababa Bole International Airport (ADD). As Simple Flying published in February, the carrier will operate up to 78 destinations across the African continent this year, adding Freetown, Sierra Leone, in May and Maun Botswana in June.

For international travelers heading towards North America, the carrier already serves up to 37 weekly flights between Ethiopia and the likes of Washington, Chicago, Toronto, Newark, Atlanta, and New York JFK. However, further growth is expected. Last November, the Ethiopian’s CCO disclosed that two additional North American destinations will be added “per year over the next few years.” He said Denver, Minneapolis, Seattle, Houston, and Montreal are coming.

Source:  Simple Flying  

Skyward Express opens new hub at JKIA

Skyward Express has opened a new hub at the Jomo Kenyatta International Airport (JKIA) as it steps up its quest to expand its services in the country.

The airline, which flies mainly from Wilson Airport in Nairobi, said Thursday that its JKIA base, which is operational effective today, will allow it to fly passengers to Mombasa and back.

The new hub will also offer an opportunity for international passengers landing at JKIA to connect to the coastal city via the airline.

“We have started operating flights to Mombasa from Terminal Two at Jomo Kenyatta International Airport in Mombasa effective today [Thursday],” said the airline’s general manager, Diana Nyambura, in an interview with the Business Daily.

“This strategic decision not only aligns with our commitment to providing enhanced connectivity to international travellers but also elevates our product offering to our dedicated clientele,” she said.

The airline has been flying passengers to Mombasa from its Wilson Airport base in Nairobi daily.

Ms Nyambura said the airline will carry passengers to Mombasa using a Fokker 100 jet aircraft.

The flight can carry up to 100 passengers and takes about 50 minutes from JKIA to Mombasa.

At its Wilson Airport hub, the airline will ferry passengers to Mombasa using a Dash 7 Q300 aircraft with a capacity of 50 passengers.

“The busy JKIA, a central aviation hub in East Africa, will now witness us enhancing our service offerings with a jet and the introduction of twice-daily flights to Mombasa (MBA), a route that promises to cater to business travellers commuting between the Port city and the Capital City of Nairobi,” she said.

Skyward Express flies out of Wilson with daily flights to Eldoret, Lodwar‚ Mombasa‚ Diani‚ Malindi and Lamu.

It also flies to Kakamega, Kitale and Migori in western Kenya.

Source: Business Daily Africa.

Exploring Innovations in IATA Payment Solutions for Travel Agents: Insights from the Inaugural Payments Summits.

30th March 2024

By: Bryan Obala

Membership & Communications, KATA

During the inaugural Payments Summits, the International Air Transport Association (IATA) provided a comprehensive overview of innovations in IATA Payment solutions. This presentation, led by IATA’s Country Manager East Africa, Agnes Mucuha, highlighted the organization’s Focus Africa initiative. This initiative is dedicated to maximizing aviation’s contribution to African development by enhancing services for passengers and shippers.

Focus Africa Initiative: The Focus Africa initiative, spearheaded by IATA, is geared towards delivering measurable improvements in six critical areas: safety, infrastructure, connectivity, finance and distribution, sustainability, and skills development. Of particular relevance to the Payments Summit discussion was the focus on finance and distribution, aiming to accelerate the implementation of secure, effective, and cost-efficient financial services, alongside the adoption of modern retailing standards.

IATA EasyPay (IEP): A significant aspect of the presentation centered on IATA EasyPay (IEP), an optional pay-as-you-go solution designed for travel agents. IEP provides a simpler and more secure method for transacting with airlines through the Billing and Settlement Plan (BSP). It’s noteworthy that IEP is a closed-loop electronic payment solution, voluntary in nature, and devoid of any charges, offering greater flexibility and choice for Accredited Travel agents to manage their business challenges.

From left: Agnes Mucuha, Country Manager East Africa, International Air Transport Association (IATA); Hamisi Hassan, Vice Chairman, Kenya Association of Travel Agents (KATA)

Advantages for Participants: IATA outlined the advantages of IATA EasyPay for participating Airlines and IATA Accredited Agents:

  • Voluntary: IEP is available to all IATA accredited agents, with the decision to use it resting with each agent. It does not intend to replace existing payment methods in the BSP.
  • Secure: IEP ensures security by requiring agents to fund their IATA EasyPay account. The system verifies fund availability at the time of ticket issuance, mitigating the risk of chargebacks for airlines.
  • Fast: IATA settles IEP amounts to airlines on a daily basis through existing BSP processes, ensuring prompt transfer of funds within 48 to 96 hours following ticket issuance.
  • Economical: With low transaction costs, IEP proves to be more cost-effective for airlines compared to credit card transactions.
  • Flexible: IEP transactions are secure, allowing agents to lower their financial security amounts with IATA and issue transactions outside their cash issuance capacity.

Expansion in Africa: An exciting revelation from the presentation was that the IATA EasyPay service is now available in 27 countries across Africa. Moreover, IATA is actively collaborating with authorities to expand into additional markets, demonstrating a commitment to support Africa’s aviation industry and modernize financial services and solutions across the continent.

In summary, IATA’s presentation at the Payments Summits provided valuable insights into the innovative strides being made in IATA Payment solutions, particularly through the introduction of IATA EasyPay. As the initiative gains momentum and expands its footprint across Africa, it promises to revolutionize financial transactions within the aviation sector, benefitting both airlines and travel agents alike.

Kenya Association of Travel Agents (KATA) Partners with Absa Bank Kenya and Visa to Introduce Enhanced Corporate Card Solutions.

28th March 2024

By: Bryan Obala

Membership & Communications, KATA

In a groundbreaking collaboration, Absa Bank Kenya, in conjunction with Visa, has unveiled the Visa Commercial Choice Programme, a pioneering Corporate Card solution aimed at members affiliated with the Kenya Association of Travel Agents (KATA). This innovative initiative promises a myriad of benefits including enhanced automation, flexibility, and improved cash flow management for travel agents across the country.

From left: Dr. Joseph Kithitu, KATA Chairman; Moses Muthui, Consumer Banking Director, Absa Bank; James Kabuthi, Head of Products and Solutions, East Africa, Visa

Under this strategic partnership, travel agents under KATA, representing a formidable network of over 300 travel agencies, stand to gain from streamlined payment solutions tailored specifically for business to business (B2B) transactions. These solutions are geared towards fostering efficient working capital management, operational effectiveness, and improved supplier relationships.

The Visa Commercial Choice Travel Programme, freshly introduced by Absa Bank, offers a plethora of advantages for travel agents within KATA. Notably, agents now have the option to conduct transactions in Kenyan Shillings or US Dollars, empowering them to effectively manage cash flows and optimize working capital. Furthermore, members can leverage the Visa Commercial Pay Virtual Card Platform to automate booking processes and access cutting-edge tools for data management and reconciliation, complete with an intuitive reporting feature for seamless monitoring.

In addition to the tailored Corporate Card solution, Absa Bank is also rolling out a revamped Absa Corporate Visa Card, equipped with enhanced features and flexibility to address the diverse needs of businesses. Through this card and the innovative Visa Commercial Pay Virtual Card Platform, businesses can exercise greater control over employee-initiated expenses and payments, thereby enhancing visibility and operational efficiency.

Commenting on the collaboration, Moses Muthui, Consumer Banking Director at Absa Bank, expressed enthusiasm, stating, “The collaboration between Absa Bank Kenya, Visa, and the Kenya Association of Travel Agents marks a significant milestone in our efforts to empower businesses and accelerate digital inclusion in this space with smarter and integrated payment solutions.”

Eva Ngigi-Sarwari, Visa Kenya Country Manager, echoed similar sentiments, highlighting the partnership’s commitment to innovation and service excellence. She emphasized, “By combining Visa’s global reach and advanced technology with Absa’s deep local market expertise, we are confident that this new payment solution will significantly enhance the way travel agents manage their transactions, providing them with a seamless, efficient and secure experience.”

Nicanor Sabula, CEO of KATA, lauded the collaboration, affirming its importance in catering to the specific needs of members and underscoring the commitment to industry-focused financial solutions.

From left: Dr. Joseph Kithitu, KATA Chairman; Moses Muthui, Consumer Banking Director, Absa Bank; James Kabuthi, Head of Products and Solutions, East Africa, Visa at the Launch of the Corporate Cards for Travel Agents

The Absa Corporate Visa Card offers a range of features including virtual and physical card options, granting customers the flexibility to adapt to various payment scenarios. Furthermore, it integrates seamlessly with Visa Commercial Pay, facilitating hassle-free payments to travel suppliers such as airlines and hotels while streamlining reconciliation processes.

With the launch of the Absa Corporate Visa Card, Absa Bank Kenya reiterates its dedication to innovation and excellence in client service. Leveraging cutting-edge technology and strategic partnerships, the bank continues to deliver solutions that resonate with the evolving needs of businesses in Kenya and beyond.