Kenya is primed to restore its position as East Africa’s leading aviation hub amid rising competition from rival African gateways. This comes as high operating costs, infrastructure degradation and financial pressures on airlines continue to test the sector’s resilience.
Industry executives say Kenya’s ongoing reforms, airport modernisation projects and efforts to strengthen connectivity are improving the country’s prospects. However, sustaining that momentum will require significant investment across the aviation value chain.
Nairobi has positioned itself as East Africa’s aviation gateway, benefiting from its strategic location and the presence of national carrier, Kenya Airways (KQ), as a regional carrier linking Africa to Europe, Asia and the Middle East.
Kamil Alawadhi, the International Air Transport Association (IATA) Regional Vice President for Africa and the Middle East, said that Kenya gradually lost some of its competitive advantage as infrastructure investment and broader aviation reforms failed to keep pace with growth.
“Kenya lost ground because investment in airport infrastructure did not keep pace with demand. Passenger charges increased, ease of travel became more challenging, and the focus on maintaining competitiveness weakened over time,” he told the Business Daily in an interview on the sidelines of the IATA Annual General Meeting and World Air Transport Summit in Brazil.
“It was a slow decline. Infrastructure investment slowed, governance became less effective, and parts of the aviation ecosystem lost strategic focus. Competitiveness does not disappear overnight; it deteriorates over time,” he added.
Mr Alawadhi, however, said the country was beginning to reverse that trend. “Kenya currently has a greater alignment among government, regulators, airport management and airline leadership. The key stakeholders understand the challenges and appear committed to addressing them,” the official said.
Positioning Kenya as key destination
Kenya’s aviation sector is abuzz with activity amid upgrades to the main Jomo Kenyatta International Airport(JKIA) and maneuvers by airlines including fleet expansion and partnerships with major global airlines.
Airlines, including KQ, have since 2025 stepped up code-share deals and expanded route networks, positioning Kenya as a key destination.
For example, in July 2025, KQ and Qatar Airways signed a code-share agreement, which unlocked extensive capacity between Doha and Nairobi. The partnership, which was expanded in October to a major 19-destination codeshare deal, strengthened KQ’s global connectivity.
As part of the deal, travellers flying on KQ got access to 10 additional destinations in Asia and the Middle East through Doha’s Hamad International Airport, while Qatar Airways’ customers got seamless access to eight key African cities on KQ’s network, including Abidjan, Accra, Addis Ababa, and Victoria Falls.
Gateway upgrades
Kenya has also stepped up upgrades at key gateways. For instance, the current JKIA main terminal is planned for capacity expansion from 7.5 million per year to 12 million. The gateway is also planned to have a new terminal capable of handling about 22 million passengers per year, and a new runway measuring 4.5 kilometres by 60 metres, capable of handling even the largest of aircraft families.
And as part of the upgrades, the Kenya Airports Authority(KAA) is also set to introduce self-service passenger processing booths and automated luggage points at JKIA.
The airport manager plans to install a new Common User Passenger Processing System (CUPPS) and Common User Self-Service (CUSS) infrastructure that is aimed at improving efficiency and passenger flow across the airport.
The CUPPS and CUSS are technology platforms standardised by IATA that allow the agents of airlines to share facilities such as check-in desks, bag drop points, and boarding gates to cut costs and maximise airport capacity.
The CUSS enables multiple airlines to allow passengers to check in, print baggage tags, print boarding passes, and select seats.
“Each workstation shall have various common-use peripherals connected, depending on the location. passport readers, boarding pass printer, and baggage tag printer at check-in and transfer desks, boarding pass reader and document printer at boarding gates,” KAA said in a disclosure, adding that the systems would be installed at JKIA under a build-operate-and-transfer model.
A work plan showed that under the proposed system, the airport will deploy 213 total workstations to support airline and airport operations. The project will also include 72 common user self-service kiosks that will allow passengers to independently check in and print their boarding passes.
Additionally, the airport plans to install 20 self-boarding kiosks and 20 bag-drop units that will allow travellers to check in and drop luggage without much staff intervention. There will also be 10 terminal entry biometric gates to enhance security and streamline passenger verification.
The planned infrastructure will be deployed across multiple sections of JKIA, including Terminal 1A, Terminal 1B, Terminal 1C, Terminal 1D, Terminal 2, Arrivals 1E, airport lounges, back offices, and additional boarding gates.
Globally, major airports have already adopted similar automation systems to streamline passenger journeys. For example, at Dubai International Airport, self-service check-in kiosks, automated bag-drop units, and biometric boarding gates allow travellers to complete most pre-departure processes independently, reducing queues and processing time.
Heathrow Airport also deploys common-use self-service kiosks that allow passengers from multiple airlines to check in, select seats, and print boarding passes at shared terminals.
Similarly, Zayed International Airport in Abu Dhabi has implemented a “Smart Travel” passenger processing system that integrates self-service check-in kiosks, automated bag-drop, and biometric boarding gates, cutting the passenger processing time by up to 70 per cent.
Focus on cargo
Mr Alawadhi urged Kenya to focus on improving its investments in warehouse capacity, logistics infrastructure and cargo handling efficiency to maintain its competitiveness in the global markets.
“Cargo competitiveness is determined long before products reach an aircraft. Warehouse capacity, logistics infrastructure and handling efficiency all influence the performance of the supply chain.” He said.
But aviation leaders warned that the race for favourite hub status in Africa will require more than geographic advantage since most nations on the continent compete for passenger traffic, tourism spending, cargo volumes and airline investment.
Structural and tax challenges
Speaking during the IATA Annual General Meeting and World Air Transport Summit, IATA Director- General Willie Walsh said Africa is one of the fastest-growing aviation markets globally, with passenger traffic projected to grow by about 10 per cent this year.
“We are seeing strong demand growth across Africa and the outlook remains positive,” IATA Director -General Willie Walsh said. Despite the strong growth, Africa still accounts for only 2.2 percent of global aviation activity.
“The opportunity is significantly greater than the market share Africa holds today,” he said.
Mr Walsh argued that the continent’s growth potential continues to be constrained by structural challenges including high taxes, expensive airport charges and elevated fuel costs.
“In many African markets, airlines face higher fuel costs, higher airport charges and higher operating costs than carriers in most other regions,” he said.
Currency volatility has further stretched the challenge.
“You can have up to 80 percent of your costs denominated in US dollars while most of your revenues are earned in local currencies. When exchange rates move against you, the financial impact can be significant.”
The imbalance is difficult for airlines operating in emerging markets where local currencies can weaken against the dollar, forcing carriers to increase fares, reduce capacity and even postpone investment.
Major concerns
The challenges mirror concerns raised about Kenya’s aviation competitiveness, where industry stakeholders have called for lower operating costs, improved infrastructure and stronger connectivity to support long-term growth.
Fuel costs emerged as one of the major concerns, with industry leaders warning that the rising energy prices continue to threaten profitability despite the strong growth in passenger demand.
IATA Chief Economist Marie Owens Thomsen said African airlines remain exposed because they already pay some of the highest jet fuel prices in the world.
“African airlines pay approximately 20 percent more for jet fuel than the global average because of their fragmented distribution systems and inefficiencies within the supply chain,” she said.
The challenge predates the current market volatility and continues to weigh heavily on airline finances, especially in regions where carriers operate on thin margins.
“When airlines operate on margins of around two percent, they struggle to build the balance sheets needed to invest, innovate and create long-term resilience.”
Profit forecast
According to IATA estimates, African carriers are expected to earn an average profit of about one US dollar per passenger this year despite the traffic growth.
Ms Thomsen said the industry is still heavily exposed to fuel market fluctuations because airlines have limited control over their largest cost component.
She added that part of what should support the long-term vision would be an industry where airlines can play a larger role in securing their own fuel supply, which will reduce their dependence on global oil markets and improve cost predictability.
