Number of Planes Drop as Covid-19 Affects Wealthy Kenyans

Data from the Kenya Civil Aviation Authority (KCAA) has revealed that the number of registered planes in Kenya dropped from 807 to 735 in 2019.

The drop is attributed to wealthy Kenyans and private aviation firms selling their planes in the wake of the Covid-19 pandemic, which took a bite of their net worth and reduced the travel demand.

Only the planes registered by the National Police Service and the Kenya Defense Forces did not record any sale.

During the year, the pandemic triggered a drop in air travel and the need to buy commercial flights. It significantly reduced wealthy Kenyan’s appetite for choppers and small jets.

“Any drop in the number of registered aircraft means that the planes were either sold or left the country due to other reasons,” KCAA Director-General Gilbert Kibe said in a statement to the Business Daily.

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The drop in the number of planes marked a break from the recent increase in the purchase of airplanes by the rich in the country over the last decade.

The number of aircraft had seen a steady rise due to the country’s status as a growing business hub and the increasing number of wealthy individuals.

The number of the wealthy in the country, however, those with a net worth of at least $30 million (Sh3.3 billion) including their primary residence, dropped to 90 last year, from 106 in 2019. This is according to data released by the Knight Frank Wealth Report.

Kenya’s group of high-net-worth individuals, defined as those with at least $1 million (Sh109 million) including their primary residence, dropped by an even larger margin.

The report says that 912 Kenyans fell out of this club last year when their numbers stood at 3,323 compared to 4,235 in 2019.

The pandemic has caused a slump in air travel, with African airlines expected to have lost $6 billion in passenger revenue in 2020.

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“The airline business in Kenya is suffering and this means that people could not acquire more planes,” said Eutychus Waithaka, the executive secretary of the Kenya Association of Air Operators.

“We had requested a stimulus package from the government that we have not seen to date. Some airlines have closed shop because they were operating with leased planes,” he added.

According to air operators, the biggest challenge in owning an aircraft lies in operational and maintenance costs, including high jet fuel prices, airport landing fees, parking fees, insurance, and spare parts.

The cost of running aircraft in Kenya is also increasing with the regulations requiring parking at gazetted points such as Wilson Airport, which adds to the ownership bill.