The Air Passenger Service Charge (Amendment) Bill, 2026
Status Timeline
Proposed
Active now
Public Review
Pending
Debate
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Executive
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Final
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Direct Remittance to All Beneficiary Entities
The Bill replaces section 6A of Cap. 475 to mandate that the Commissioner of the Kenya Revenue Authority remit collected passenger charges directly to the respective beneficiary entities. This replaces the existing requirement to pay all collected charges into the Kenya Airports Authority Fund.
Adherence to Cabinet Secretary Apportionment
Collected funds must be distributed to beneficiaries in the specific proportions determined by the Cabinet Secretary under section 3(3) of Cap. 475, after deducting the collection expenses of the Kenya Revenue Authority.
Restructured KAA Fund Sources
Consequentially, the Bill amends section 17B of the Kenya Airports Authority Act (Cap. 395) to limit the KAA Fund's passenger charge revenue strictly to the specific proceeds allocated to it under section 3(3) of Cap. 475, rather than receiving all proceeds by default.
Bill No.
No. 56 of 2026
Gazette No.
Supplement No. 206 of 2026
Sponsor
Kimani Ichungwah
Background
The Air Passenger Service Charge (Amendment) Bill, 2026 seeks to resolve administrative ambiguity regarding the distribution of collected air passenger service charges. Under the current framework, all collected passenger service charges are directed into the Kenya Airports Authority Fund. However, section 3(3) of the Air Passenger Service Charge Act (Cap. 475) intends for these proceeds to be apportioned among multiple beneficiary entities—specifically the Kenya Airports Authority (KAA), the Kenya Civil Aviation Authority (KCAA), and the Tourism Promotion Fund. This amendment introduces direct remittance mechanisms to ensure each entity receives its designated portion directly from the collector.
Key Amendments
Amendments to the Air Passenger Service Charge Act (Cap. 475)
- Section 3(2): Amends this section by deleting the word "charges" and substituting it with the word "amounts" to align statutory terminology.
- Section 6A: Deletes the existing section—which directed all proceeds of the charge to the Kenya Airports Authority Fund after deducting collection expenses—and replaces it with a new provision. Under the new section 6A, the Commissioner must remit collected proceeds directly to the respective entities specified under section 3(3) in the proportions designated by the Cabinet Secretary's Gazette notice, minus collection expenses incurred by the Kenya Revenue Authority.
Amendments to the Kenya Airports Authority Act (Cap. 395)
- Section 17B: Amends paragraph (a) regarding the sources of funds for the Kenya Airports Authority. It replaces the clause directing "all proceeds from the charge collected under the Air Passenger Service Charge Act (Cap. 475)" to the Fund with a clause directing only the specific "proceeds received under section 3(3) of the Air Passenger Service Charge Act".
New Obligations
Commissioner of the Kenya Revenue Authority
- Direct Remittance: The Commissioner is legally obligated to distribute collected air passenger service charges directly to the designated beneficiary entities (such as the KAA, KCAA, and Tourism Promotion Fund) according to the apportionment ratios specified in the Cabinet Secretary's Gazette notice, rather than routing the entirety of the funds through the Kenya Airports Authority Fund first.
- Expense Deduction: The Commissioner remains authorized to deduct the Kenya Revenue Authority's collection expenses before remitting the remaining proportions.
Gazettement
The Bill was published in Kenya Gazette No. 206.
First Reading
The Bill was read a First Time in the National Assembly.