NAIROBI, Kenya- A one-day strike by aviation workers has left travel agents in Kenya grappling with losses estimated at over Sh500 million.
The strike, which disrupted operations at major airports, stranded hundreds of travelers and caused significant flight cancellations and rescheduling across several airlines.
While operations have now resumed, the financial toll on the industry is severe, with agents struggling to meet customer demands for compensation and refunds.
The strike, led by the Kenya Aviation Workers’ Union (KAWU) in protest of a potential investment deal between the government and Indian firm Adani Holdings, saw several major airlines, including Kenya Airways, Emirates, and British Airways, cancel or delay flights.
The Jomo Kenyatta International Airport (JKIA) was the epicenter of the disruption, affecting both domestic and international routes.
Nicanor Sabula, CEO of the Kenya Association of Travel Agents (KATA), described the impact as “devastating” for the industry.
“We are estimating total industry losses of over Sh500 million in just a single day,” Sabula stated. Routes to key destinations such as Dubai, Doha, Amsterdam, and Paris were particularly affected.
Travelers are now pushing for refunds and compensation, leading to a financial squeeze for many businesses.
Airlines are legally obligated to compensate passengers for cancellations made less than 14 days from departure, offering re-routing or refunds, and providing accommodation if needed .
Amid the disruption, KATA is calling for a broader adoption of modern payment systems in the travel industry, including cryptocurrencies.
With consumer behavior rapidly changing and technological innovations shaping the future of payments, KATA believes Kenya must adapt to remain competitive.
“From traditional credit cards to a myriad of digital payment options, the expectations of travelers have evolved,” KATA noted. As more countries embrace digital payment platforms, Kenya’s travel sector must innovate to meet global standards and keep pace with competitors .
The strike not only disrupted local operations but also highlighted the competitive pressures Kenya faces in the regional aviation industry.
Neighboring countries like Rwanda, Ethiopia, and Uganda are investing heavily in their aviation sectors, positioning themselves to tap into growing tourism revenues.
JKIA, which connects Kenya to 64 global destinations and handles over 8.6 million passengers annually, is crucial to maintaining the country’s competitive edge.
Following the strike, the government has agreed to disclose full details of the Adani proposal as it seeks to expand JKIA and ensure it remains competitive in the region .