East African Business and Investment Summit to address rising air transport costs in the region
The issue of opening up their skies to liberalize air transport among the eight East African Community Member States is bound to crop up again during the forthcoming regional Business and Investment Summit scheduled for Nairobi, Kenya in October.
“Air Transport in East Africa is too expensive for most people and this inhibits the free movement of people, goods and labor as stipulated in the EAC common market protocol,” stated Adrian Njau the Acting Executive Director of the East African Business Council (EABC).
Njau pointed out that when regional airlines are treated as foreign carriers in member countries, transport costs are bound to be high.
“The other problem arising from the sector is that some EAC member countries have signed Bilateral Agreement of Air Services Agreement (BASA), with overseas airlines and this further alienates them from fellow member states,” Njau maintained.
Market analysts say air transport costs can be brought down with serious political commitment to implement the Single African Air Transport Market (SAATM) agreement.
Other experts say the East African region continues to ramp up investments in infrastructure to narrow the infrastructure gap and enhance intermodal connectivity.
The investments, according to observers, have yielded impressive results; for instance, the transit time from Mombasa to Kampala has improved from 20 days in 2010 to the current average of 6 days, with a resultant cost reduction from USD 3,500 in 2010 to USD 2,200.
Air passenger taxes on regional departures are charged at USD 46.16 while international departures demand USD 48 in taxes. Passengers are also being subjected to transfer and arrival taxes and fees.
The average airport charges in Eastern Africa are extremely high at USD 579.78 increasing air passenger ticket and cargo costs and impacting the competitiveness of the community.
East African countries thus intend to use their Regional Business and Investment Summit in Nairobi to address the rising costs of air transport.
The East African Business Council (EABC) in partnership with the East African Development Bank (EADB) will hold the upcoming East African Business, Investment Summit and Expo 2025, a premium platform for shaping the region’s economic future on 16th – 17th October in Nairobi, Kenya.
“We are honored to partner with the East African Development Bank for the 2025 East African Business and Investment Summit, the EADB’s support reflects its strong commitment to regional integration, sustainable private sector driven growth,” said Mr Njau.
“During the summit we also anticipate that EAC member states shall find ways to forge ahead after the AGOA agreement expires, including if they could renegotiate the deal jointly as a region and even transform the act into a bilateral agreement for sustainability,” stated Njau.
This year’s Summit will be held under the theme: “Promoting Private Sector-Driven Regional Integration for Increased Intra- and Extra-EAC Trade and Investment.”
It will also carry the mantra: “EAC Rising: From Reform to Results in a Thriving Pan-African Market.”
“This Summit is not just another conference—it’s a results-driven platform to shape policy, connect businesses, and accelerate trade and investment ties across EAC, continent and beyond.”
EADB’s strategic sponsorship underscores the Bank’s vision of promoting sustainable socio-economic development.
The Bank’s support is aimed at elevating regional dialogue and showcasing actionable opportunities that can unlock the EAC’s trade and investment potential.
Earlier, the Acting Director General of the East African Development Bank, Benard Paul Mono, said the EADB, understands that the private sector acts as a crucial vehicle for the development of the economies in the region.
“This understanding is what has driven our initiatives as the apex development finance institution to finance private sector players in the region.”
“By partnering with EABC, we view this summit as a catalytic platform to advance a shared vision of promoting sustainable socio-economic growth,” he said.
The summit will address the continued operationalization of the African Continental Free Trade Area (AfCFTA) and the commencement of the Tripartite Free Trade Area (TFTA) implementation.
Delegates will discuss emerging global trends such as climate change, digital transformation, and de-globalization and explore how East Africa can leverage these shifts to reposition the EAC as Africa’s premier trade and investment hub.