Roads and Transport Cabinet Secretary Kipchumba Murkomen gives his keynote speech during the launch of Kenya Airways Loyalty Programme launch that has held at the KQ headquarters in Embakasi Nairobi. [Silas Otieno, Standard]
Transport Cabinet Secretary Kipchumba Murkomen has said the Finance Bill, 2023 will help boost the national carrier, Kenya Airways (KQ).
"The bill that is before parliament contains amendments that delete some tax clauses that according to the sector were making it difficult for investors that are running airlines and aircraft maintenance," Murkomen said.
The CS said this on Wednesday, during the launch of the customer loyalty programme by KQ, dubbed Asante Reward.
He said the Bill proposes to scrap three taxes on aircraft and parts importation.
The tax exemptions include a 16 per cent Valued Added Tax (VAT), scrapping 3.5 per cent import declaration fee (IDF) as well as two per cent Railway Development Levy (RDL).
Murkomen added that removal of tax on the importation of aircraft and maintenance parts will also help reduce the losses incurred by the airline.
"We want to take Kenya Airways back to where it was. As a Ministry we are ready," he added.
The Asante Reward programme seeks to leverage customer relations between the airline company and consumers of its services.
"We are presenting to the world a fully-owned Kenya Airways customer loyalty programme. We have taken the opportunity to appreciate our customers,'' Allan Kilavuka, KQ chief executive and Managing Director said.
According to Kilavuka, the aviation sector contributes to about four per cent of the country's GDP with 5000 jobs and therefore is an important sector to the growth of the economy.
Kilavuka said that the programme presents a number of customer benefits ranging from personalised offers to tailored rewards.
KQ customers can register to benefit from the programme by visiting their website or downloading the Kenya Airways application on Google or Apple store.
"Customers will be awarded 1000 points on enrolment. You need to keep your loyalty programme status by requesting a status match for you to grow your points," stated Kilavuka.
The programme, invested in customer experience, is also geared toward increasing revenue and customer retention.