Aviation generates USD3.3 Billion for Kenya’s economy – IATA study reveals

May 13, 2025 in Business, Companies, Trade & Industry, Travel & Tourism by Editor

Kenya’s aviation sector contributed a significant USD 3.3 billion to the national economy in 2023, according to a new report released by the International Air Transport Association (IATA). The Value of Air Transport study quantifies the sector’s broad economic impact, underscoring its role as a vital engine of job creation, trade, and tourism.

The figure represents 3.1pc of Kenya’s Gross Domestic Product (GDP) and includes the combined value of airline operations, supply chain activity, employee spending, and aviation-linked tourism. The sector also supported 460,000 jobs, with 5,700 employed directly by airlines operating in Kenya.

“Aviation is more than a mode of transport—it’s a key economic enabler,” said Willie Walsh, Director General of IATA. “With a contribution of USD 3.3 billion to GDP and nearly half a million jobs, Kenya’s aviation sector is poised for even greater impact as Africa’s air transport market grows at a projected rate of 3.7pc over the next 20 years.”

Kenya’s Position in Global Aviation

The report was released at the start of the IATA Ground Handling Conference which got underway in Nairobi Today, indicates that Kenya handled 380,000 tonnes of air cargo in 2023, positioning it as the 35th largest air cargo market in the world—attesting to its growing role in international trade, particularly in high-value exports such as flowers, fresh produce, and pharmaceuticals.

To sustain and grow this momentum, IATA outlined three strategic priorities for Kenya’s aviation development, spanning infrastructure, passenger and cargo facilitation and workforce training. IATA emphasized the need for cost-efficient and globally standardized airport infrastructure, urging close collaboration between government authorities and airlines. This is crucial for strengthening Kenya’s role as a major air hub in East Africa.

IATA observes further that the rollout of Kenya’s Electronic Travel Authorization (eTA) system could significantly boost tourism and business travel, while the digitalization of cargo and passenger handling will enhance Kenya’s competitiveness as a trade and travel gateway.

Additionally, a skilled labor force is vital to maintaining safety, operational efficiency, and environmental sustainability. IATA highlighted its partnership with Kenya Airways to expand training through its regional training centre, building capacity in areas such as ground handling, digital transformation, and green aviation technologies.

With the African aviation market poised for robust growth, IATA says that Kenya has the potential to be a regional leader in air transport—if supported by the right policies, infrastructure investments, and workforce development initiatives.

“Kenya has the opportunity to multiply aviation’s contribution to its economy, but it must act now to ensure infrastructure, regulations, and talent development keep pace with demand,” Walsh added.