Real price of keeping Kenya in the skies

Kenya Airways planes at JKIA

KQ planes on the taxi bay at Jomo Kenyatta International Airport. 

Photo credit: File | Nation Media Group

When you see the Kenya Airways (KQ) red tail in a foreign airport or listen to its jingle after many weeks away from home, it sends a certain warm and indescribable feeling to anyone.

Few stop to think about what it takes to keep a national airline in the air. For KQ, the reality is a high-stakes balancing act of capital investment, global regulation, and operational complexity.

The carrier is not simply a commercial enterprise. It is a national asset contributing Sh336.3 billion to gross domestic product and supporting over 25,000 jobs.

It connects Kenya to global markets, enables tourism, and earns about Sh90 billion in foreign exchange annually. The airline is crucial for exporting perishable goods like cut flowers, fresh fruits, and vegetables, with more than Sh16 billion worth of such products shipped globally in 2024.

However, maintaining these operations is costly. A brand new Boeing 787 Dreamliner costs about Sh32 billion. KQ owns nine, which is an investment worth more than Sh288 billion. That figure does not include the cost of keeping them airworthy.

Overhauling a single GEnx engine costs about Sh1.9 billion. Each Dreamliner has two engines. So engine maintenance alone totals more than Sh34 billion over time.

This level of capital intensity sets aviation apart. Unlike banking or manufacturing, assets are highly mobile and prone to rapid obsolescence. Safety requirements mean aircraft must be updated or replaced on strict timelines, regardless of whether the cost has been fully recovered.

An airline’s most valuable asset is its people. Training a pilot costs at least Sh8 million.

KQ has over 350 pilots, representing an investment of more than Sh2.8 billion. The airline also has about 750 engineers and technicians, each costing Sh7.5 million to train or Sh5.6 billion in total. Even cabin crew training is costly, at Sh500,000 per person. With over 1,000 cabin crew, this translates to an excess of Sh500 million.

Every flight demands a small army of skilled workers. It takes at least 100 people, from pilots, engineers, cabin crew, loaders and ground handling professionals, to get one aircraft from the gate to the runway. With about 110 take-offs and landings each day, the airline requires over 3,300 man-hours daily.

Aviation is among the most heavily regulated industries in the world. For KQ, just four core certifications cost Sh22 million annually, and that figure excludes the complex and costly requirements of operating in more than 40 countries.

Factor in volatile fuel prices, airport fees, multiple operating currencies, and the need to maintain the highest safety standards, and it becomes clear why airline profit margins are among the thinnest of any industry.

Kenya Airways is sometimes criticised for being costly. In reality, airfares are shaped by demand and supply, timing, seasonality, fuel costs, aircraft type, taxes, and competition.

Government support for airlines, financial and policy interventions, is common worldwide, not just for Kenya Airways. This became especially clear during Covid-19 when many assisted their aviation sectors.

The cost of running a national airline is undeniably high. However, the cost of not having one (in lost jobs, reduced trade, weakened tourism, and diminished global influence) would be far greater. Keeping Kenya in the skies is not simply a matter of commercial viability. It is an investment in the country’s economic resilience, global connectivity, and future prosperity.

A like for like comparison with other carriers on the same routes often shows KQ prices to be competitive, especially for direct flights that save passengers time and hassle.

How other countries support their airlines

African examples include Senegal's $128 million (About Sh16.5 billion) relief package, Seychelles waiving airport fees from April-December 2020, and Côte d'Ivoire eliminating transit tourism taxes. Such fiscal support for travel and tourism was widespread during the pandemic.

Other support includes policy reforms, particularly airport-airline alignment. Airports boost local economies by creating jobs and increasing incomes.

Research shows that for every million passengers, airports generate 2,000 to 4,000 jobs across various roles including pilots, ground crews, security, and retail staff.

The economic impact extends beyond airports to businesses like hotels and taxi services, creating additional job opportunities and higher wages.

Allan Kilavuka is the Group Managing Director and Chief Executive Officer at Kenya Airways

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