• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Aviation

Wealthy Kenyans now sell planes to survive Covid-19

4 years ago
in Aviation, Business, highlights, Home, home-news, latest News
2 min read
0 0
0
63
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Wealthy Kenyans now sell planes to survive Covid-19

Wealthy Kenyans and private aviation firms last year sold 72 planes in the wake of the Covid-19 pandemic that reduced the millionaires’ net worth and hit demand for travel.

The Kenya Civil Aviation Authority (KCAA) data show the number of registered planes dropped to 735 from 807 in 2019, excluding those owned by the National Police Service and the Kenya Defence Forces.

The drop came in a year when coronavirus triggered a slump in air travel and reduced the need for purchase of commercial flights.

The virus, which disrupted businesses and hammered most asset classes, reduced the net worth of wealthy Kenyans and saw the rich reduce their appetite for helicopters and small jets.

Kenya’s business magnates, politicians and new millionaires have in recent years taken to flying as the preferred mode of transport – expanding the market for leasing and private ownership of planes.

“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 told the Business Daily.

RelatedPosts

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

This marked a break from the increased purchase of aircraft by the rich over the past decade.

Aero Club of East Africa – a lobby of private aircraft owners – attributed the recent growth in the number of registered planes to Nairobi’s rising status as the region’s business hub and a growing number of wealthy individuals with the means to own and maintain an aircraft.

But Covid-19 has not spared the rich after Kenya’s economy dipped to a recession last year.

The economy’s performance in 2020 was hit by the effects of Covid-19 restrictions leading to including business closures and layoffs.

The economy has been picking up after posting a contraction of 0.3 percent in 2020.

The latest instalment of the Knight Frank Wealth Report shows the number of Kenyans 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

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.

“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.

Read This: Cedi to further weaken as dollar demand persists

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

Kenya in March last year confirmed the first Covid-19 that prompted the government to suspend domestic and international commercial passenger air travel.

Although domestic air travel resumed in July, followed by international routes a month later, demand has stayed below pre-pandemic levels.

Besides convenience, wealthy individuals have also acquired aircraft to satisfy their ambitions for reliable and personalised travel.

Air operators say that the biggest headache in owning an aircraft lies in operational and maintenance costs, including high jet fuel prices, airport landing fees, parking fees, insurance and spare parts.

Wilson Airport in Nairobi handles about 90 percent of domestic flights that mainly comprise chartered and commercial flights to holiday destinations such as Masai Mara Game Reserve, Mombasa, Amboseli National Park, Lamu, Kilimanjaro, Diani, Lokichogio and Nanyuki.

It is ranked among the busiest airports in terms of aircraft movement in East and Central Africa.

Last year about 101 planes abandoned at various airports across the country were put on auction to clear rising parking charges after the Kenya Airports Authority declared them a safety risk.

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

Tags: COVID-19 pandemicKenya Airports AuthorityKenya Civil Aviation Authority (KCAA)Wealthy Kenyans now sell planes to survive Covid-19
No Result
View All Result

Highlights

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

Banking Sector Soundness Remains Robust in 2024 Amid Strong Profitability, Adequate Capital Buffers

Sha’Carri Richardson Withdraws from US Trials Following Arrest

From Singuluma to El Kaabi: Can CHAN 2024 Unleash the Next Hat-trick Hero?

Ghana to Welcome King’s Baton Relay on August 8 Ahead of 2026 Commonwealth Games

Trending

Features

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

August 2, 2025

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes Parliament has adjourned...

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

August 2, 2025

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

August 2, 2025

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

August 2, 2025
Bank of Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

August 2, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.