Bill seeks billions for Tourism Fund, weatherman gets MPs' nod

Deputy Minority Leader Robert Mbui expressed support for the Air Passenger Service Charge (Amendment) Bill, 2025. [File, Standard] The Air Passenger Service Charge (Amendment) Bill, 2025 has sailed through second reading after MPs' endorsement. However, the House was rocked by disquiet during Thursday's debate of the Bill that seeks to add the Kenya Meteorological Department and the Tourism Fund to the beneficiaries of billions generated through the charge. If approved, the weatherman and the Tourism Fund will get a share of the money collected from air passengers. Deputy Leader of the Minority Robert Mbui expressed support for the Bill noting that it was the right move to ensure that the government retained control of the critical infrastructure. "This fund has always existed but was previously shared among three institutions. Under the new proposal in the Bill, one of the tourism-related institutions has been changed. Previously, the funds collected from air passengers went to the Tourism Promotion Fund. The amendment proposes that the money now go to the Tourism Fund, which is more centralised and can be utilised more effectively," said Mbui. He noted that lack of funding to such critical institutions would only attract foreign investors and urged backing of the Bill as a way of safeguarding the assets. "We cannot allow essential infrastructure into the hands of foreign investors. I am also concerned by reports circulating in the corridors of power that even Kenya Pipeline Company may soon be handed over to private investors. What kind of country will we become if the distribution of energy, the distribution of fuel, and the management of our airports are all in private hands? This would mean that individuals or entities outside the government could effectively control the country," he added. Makueni MP Suzanne Kiamba expressed concern that the billions generated through the charge would not be enough to cover the current and additional departments. "I find this Bill enriching. My only concern is that this Fund has mainly been used to directly manage services related to the airport. Once these funds are allocated to other services, what happens to the operations currently managed by the KAA," observed Kiamba. Kitui Central MP Makali Mulu also warned that there needed to be a centralised and fair method of determining which institution got what portion of the funds lest there is a mismanagement of the funds. "The justification for the institutions to receive the funds has been well explained by the mover. However, just a word of caution: the mover mentioned that, once the money is collected from passengers, the manner in which it is shared can be left to the accounting officer. We need to be careful with that. The accounting officer should be able to specify how much money goes to each institution," he said. Notably, the Bill currently proposes that all proceeds of the charge (passenger service) shall be apportioned in a manner as the Cabinet Secretary (Transport) may by notice in the Kenya Gazette, specify. If approved, the Kenya Meteorological Service Authority would be allocated a portion to strengthen weather-related aviation safety and services. Travellers currently pay Sh600 for a domestic ticket and $50 (about Sh6,400) for an international ticket as the passenger service fee. From international flights, KAA receives 60 per cent of the proceeds, KCAA gets 20 per cent, and the Tourism Promotion Fund takes the remaining 20 per cent. Proceeds from local flights are distributed at 50 per cent, 30 per cent, and 20 per cent, respectively, under an order issued on December 31, 2022. MPs have been pressing for more transparency in managing these funds and want the amounts disclosed to the public. The current law allows the Transport Cabinet Secretary to adjust the sharing ratios between the three existing beneficiaries. MPs are however seeking to put an end to the CS's autonomy and have a body of experts determine the same.

Bill seeks billions for Tourism Fund, weatherman gets MPs' nod

Get Full Access for Ksh299/Week.

Related Topics

Similar Articles

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS

Similar Articles

Farmers turn banana stems waste into wealth

AMAC signs deal with Uganda's Grain Council to open regional markets

Konza, Microsoft bank on AI skills to accelerate women in creative economy

Iran war: Why Kenyans should brace for fuel crisis despite State's assurance

DIGGER JOBS

Digger Motors

Digger Real Estate

Bill seeks billions for Tourism Fund, weatherman gets MPs' nod

Get Full Access for Ksh299/Week.

Related Topics

Similar Articles

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS