Kenya Among 8-Country Coalition Aiming to Raise Ksh 28T From Luxury Air Travel Taxes

A graphic showing taxes and the Kenyan flag in the background.
A graphic showing taxes and the Kenyan flag in the background.
Photo
Canva

Kenya has joined an international coalition of eight countries lobbying for a global taxation on luxury air travel.

In a statement dated June 30, the French Presidency announced the launch of the coalition, which seeks to increase the number of countries applying taxes on airline tickets, including premium travel, and to tax private jets.

Additionally, it aims to ensure upward harmonisation and greater progressivity in countries that have already implemented such taxes.

The group, made up of Kenya, France, Spain, Barbados, Somalia, Benin, Sierra Leone and Antigua and Barbuda, has suggested that the levies on flying could raise up to Ksh28 trillion ($220 billion) if they were applied across the board.

A black private jet on a runway (left) and the interior of the Boeing 787
A black private jet on a runway (left) and the interior of the Boeing 787
Photo
Daily Mail

In addition to the eight countries, the coalition announced that the European Commission would provide technical support to this initiative, without going into details of its role.

The coalition justified this move by the fact that although the aviation industry contributes about 2.5 per cent of carbon emissions, it remains heavily undertaxed despite its role in polluting the environment and contributing to global warming.

For instance, kerosene, commonly used by aeroplanes as jet fuel, generally remains exempt from all customs duties and taxes. 

Air travel also remains highly correlated with income level, with a sharp increase in the premium travel segment since the COVID-19 pandemic.

"Based on the expertise gathered by the Global Solidarity Contributions Working Group, launched at COP28 under the 4Ps Compact, France, Kenya, Barbados, Spain, Somalia, Benin, Sierra Leone, and Antigua and Barbuda announce the launch of a coalition, under the Seville Platform for Action (SPA), to work towards COP30 on a better contribution of the aviation sector to just transitions and resilience, with a particular focus on premium travellers, with a view to investing all or part of the revenues in resilient investments and just transitions," the statement read.

Reacting to the announcement, Greenpeace International welcomed the important step, claiming that the taxes would raise funds for climate action and sustainable development.

“Flying is the most elite and polluting form of travel, so this is an important step towards ensuring that the binge users of this undertaxed sector are made to pay their fair share," Rebecca Newsom, Global Political Lead of Greenpeace International’s Stop Drilling Start Paying campaign, said.

"With the cost of climate impacts surging in countries least responsible for the crisis, bold, cooperative action that makes polluters pay is not just fair – it’s essential," she added, highlighting that the next step would be to hold oil and gas corporations to account.

France, Kenya and Barbados have previously lobbied for such "solidarity levies" to raise money for climate action, suggesting taxes on shipping, fossil fuels, plastic and cryptocurrency.

An Aeroplane in flight
An Aeroplane in flight
Photo
The Airline Transponder