KAA cancels project meant to double parking fees

 

A section of Jomo Kenyatta International Airport. Under the proposed revenue plan, KAA had intended to restructure parking slots and charges at the airport. PHOTO | FILE 

By ALLAN ODHIAMBO, aodhiambo@ke.nationmedia.com

In Summary

• The cancellation of the tender is expected to provide relief to taxi and tour operators as well as logistics firms that use the facility that is currently undergoing massive expansion.
• Implementation of the plan would have meant higher cost of doing business.
• A review of the proposed rates by KAA showed that saloon cars accessing the airport even without parking would be charged Sh100 up from the current Sh50 while pick-ups would pay Sh150 instead of Sh70 currently.

The Kenya Airports Authority (KAA) has cancelled a tender to implement a new revenue plan that would have more than doubled parking and access fees at the Jomo Kenyatta International Airport (JKIA), handing relief to users.

“Bidders who had purchased the document are advised to seek refund from our cash office during official working hours upon submission of original receipt,” KAA acting managing director Yatich Kangugo told firms that participated in the bids.

KAA chairman David Kimaiyo said the agency would proceed with the revenue plans at a later date.

“There is nothing new with the whole thing. We want to first establish a business case,” he said.

The cancellation of the tender is expected to provide relief to taxi and tour operators as well as logistics firms that use the facility that is currently undergoing massive expansion. Implementation of the plan would have meant higher cost of doing business.

Under the proposed revenue plan, KAA had intended to restructure parking slots and charges at JKIA, which is the busiest and fastest growing logistical hub in eastern and central Africa and currently handles an average of 6.5 million passengers yearly.

A review of the proposed rates by KAA showed that saloon cars accessing the airport even without parking would be charged Sh100 up from the current Sh50 while pick-ups would pay Sh150 instead of Sh70 currently.

Trucks and buses will pay Sh200 up from Sh90 while trailers will be charged Sh250 instead of Sh160. Parking in the cargo area will cost motorists a minimum Sh100 for up to 15 minutes from the current minimum of Sh70.

Owners of saloon cars parked in this zone for between 12 to 24 hours will pay Sh650 up from Sh200. Trailers parked in the cargo zone will attract a minimum of Sh400 for stays of up to 15 minutes, up from Sh180, and Sh800 for periods between 12 and 24 hours instead of Sh200.

Long-term parking in the cargo area will attract a daily charge of Sh1,500 up from Sh700 currently.

Statistics by the KAA show that about 375,000 saloons access the airport every month compared to 41,500 pick-ups and vans. Some 15,000 trucks and 10,000 commuter buses access the airport every month alongside 4,000 trailers.

Going by the current traffic numbers, JKIA collects about Sh23.64 million a month from vehicles that access the airport without parking.

Under the proposed rates, revenue from access fees alone will jump to about Sh47.72 million a month, representing an increase of about 102 per cent.

READ: JKIA parking and access fees to more than double in new revenue plan

KAA said the new rates would be incorporated in its planned integrated parking and revenue management system. The expanded airport will have a total of 2,700 parking slots.