KATA says travel industry lost more than KES 500Million from aviation workers’ strike

By Steve UMIDHA

The strike by aviation workers across the country saw the travel industry lose hundreds of millions of shillings in potential incomes.

Preliminary estimates by Kenya Association Travel Agents (KATA), show that its members lost over Sh200 million in air ticket sales alone, excluding rebooking fees and the costs incurred by airlines accommodating passengers who missed their flights.

“When accounting for related services such as accommodation, ground transfers, and travel insurance, the total losses could easily exceed Sh500 million. Some international airlines flew back empty, while others have indefinitely cancelled or rescheduled flights, further disrupting operations,” noted the association in a statement.

The trike which ended in a truce late evening Wednesday, had caused frustration, anxiety, and distress, according to KATA’s Chairman Joseph Kithitu noting that the unfortunate incident had has left a bad taste in the mouths of affected passengers’ and the overall reputation of Jomo Kenyatta International Airport (JKIA) as a regional aviation hub.

“The strike ‘s impact on Kenya’s already fragile economy cannot be overstated. KATA calls on the Government to take decisive action to ensure that the underlying issues with the workers ‘union are permanently resolved, preventing any future disruptions to airport operations. Kenya simply cannot afford another crisis of this magnitude,” said Kithitu.

As a result, travel agents now urge decisive government action to prevent future strikes, as industry grapples with severe financial losses and operational challenges.

“The Kenya Association of Travel Agents (KATA) commends both the Government and the Kenya Aviation Workers Union (KAWU) for quickly resolving the impasse and agreeing on a return-to-work formula. However, travel agents emphasize that such industrial action, with far-reaching consequences, should never have been allowed to occur in the first place,” reads the statement in part,

The strike was called in protest against India’s Adani Group, which has proposed to lease Nairobi’s Jomo Kenyatta International Airport for 30 years in exchange for a $1.85 billion investment. The Kenya Aviation Workers Union, had expressed fears that a deal with Adani could lead to job losses to non-Kenyan workers.

The Law Society of Kenya and the Kenya Human Rights Commission, a non-governmental organization, are contesting the government’s decision to lease Nairobi’s Jomo Kenyatta International Airport to Adani Airport Holdings.

LSK says the deal violates the constitution and are challenging the government’s authority to proceed with the lease.

According to their filings, LSK says that Kenya can raise funds independently to expand Jomo Kenyatta International Airport without committing to a 30-year lease.

 

Under the terms of the build-operate agreement, Indian billionaire Gautam Adani’s company would be responsible for upgrading Jomo Kenyatta International Airport, East Africa’s busiest aviation hub. The deal includes constructing a second runway and a new passenger terminal.

The Kenyan government has defended the arrangement, arguing that the airport is currently operating beyond its capacity and urgently requires upgrades.

In July, Kenya Airports Authority’s acting Managing Director, Henry Ogoye, emphasized that the proposal would undergo rigorous technical, financial, and legal reviews to ensure it aligns with the nation’s public-private partnership laws.

Adani Airport, is controlled by Asia’s second-richest person, Gautam Adani, and manages a portfolio of eight airports in India, dominating over 50% of the top 10 domestic routes. The company’s airports handle 23% of Indian air traffic and serve 20% of the total passenger base.