• About
  • Advertise
  • Privacy & Policy
  • Contact
Kenyan Business Feed
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
Kenyan Business Feed
No Result
View All Result
Home News

Aviation industry seeking clarity on jet fuel regulations

Kenyan Business Feed by Kenyan Business Feed
Aviation industry seeking clarity on jet fuel regulations
Share on FacebookShare on Twitter

Table of Contents

Toggle
        • Columnists
  • Aviation industry seeking clarity on jet fuel regulations
Columnists

Aviation industry seeking clarity on jet fuel regulations

Wednesday, June 5, 2019 20:32


By JAMES ANYANZWA |

JKIA’s aviation fuel market size is about 756
JKIA’s aviation fuel market size is about 756 million litres a year. FILE PHOTO | NMG 

The energy regulator issued circulars in April and May on jet fuel providers which has created confusion among major stakeholders in aviation industry as to the intended objectives and the mode of implementation.

Although the circular claims “all traders” of jet fuel are required to adhere to regulations that are applicable to full-fledged Oil Marketing Companies (OMC), market sources claim the actual target is foreign and local intermediaries who do not come under the definitions of OMC or that of trader.

The circulars, if implemented as the market suggests would be similar to demanding a travel agency or a holiday provider to have a full-fledged airline licence if they engage in selling airline tickets.

All around the world, there are facilitators in the system who function as “consolidators of services” or a “one-stop shop” that links direct providers in a user-friendly manner to the end-users in the market. This should be encouraged rather than be frowned upon.

Other noticeable “facilitators” in the system are freight forwarders; they link a shipper of cargo with a shipping source in air/sea or ground channels – by definition a freight forwarder is a consolidator of cargo and leverage their scale of quantity to exert the best of rates/channels among sea/air/land actual providers (that is, airlines/shipping lines/surface transport…etc) – if the similar equation is applied in this case a freight forwarder would be required to have its own licences and assets as an airline/shipping line and ground transport which goes against common sense.

Newly published rules on aviation “forces” all facilitators to have own OMC licences thus compelling them to own infra-structure and so on.

Currently, the Jomo Kenyatta International Airport (JKIA) is served by seven OMCs and it was long established that the competition is too big for a market of the size of JKIA.

JKIA’s aviation fuel market size is about 756 million litres a year. In comparison, Dubai Airport with a market size of 9.2 billion litres (12 times the size of JKIA) annually is served by only five OMCs.

If the new regulations take effect they will force local/international facilitators to have their own equipment/assets and become full-fledged OMCs. This will further increase the number of OMCs in an already overcrowded market.

Currently, a facilitator will partner with an existing OMC (similar to travel agency contracts with an airline to sell tickets or a freight forwarder ties up with an airline/shipping line for cargo space) to serve their client’s requirements thus not disturb the number of OMCs in the market.

If the mandate of the Energy and Petroleum Regulatory Authority is to be implemented, international and local “facilitators” who previously did not need fuel infrastructure investments in Kenya will have to procure such infrastructure investments and be ready with a licence within a span of 60 days.

This is not practical and hence the move appears designed to protect some disgruntled OMCs who fell behind the market share due to their malpractices with airline customers.


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
Kenyan Business Feed

Kenyan Business Feed

Recommended.

KRA officers’ smash ethanol smuggling ring at Nairobi Inland Port

May 15, 2019

How the students have benefited from Centum PLC

July 1, 2022

Subscribe.

Trending.

Safaricom warns customers against fake M-Pesa investment schemes circulating online, urging Kenyans to verify all offers through official channels.

Safaricom Warns Customers Against Fake M-Pesa Investment Schemes Circulating on Social Media

September 21, 2025
Tourism CS Rebecca Miano joins Samburu leaders at the Maralal Camel Derby, which draws 30,000 visitors and boosts cultural tourism in northern Kenya.

Maralal Camel Derby Draws 30,000 Visitors as Festival Anchors Samburu on Global Tourism Map

September 28, 2025
Co-operative Bank of Kenya recognized at Global SME Finance Forum 2025 for innovative business banking solutions supporting SMEs across Africa.

Co-op Bank Honored at Global SME Finance Forum 2025 for Advancing SME Finance and Innovation

September 22, 2025
Safaricom Chapa Dimba All-Stars closed their Spain tour with a 4-2 win over SD Huesca, showcasing Kenyan youth football talent on an international stage.

Safaricom Chapa Dimba All-Stars Seal Spain Tour With 4-2 Victory Over SD Huesca

September 21, 2025
Nairobi hosts the first PUBG Mobile Africa Cup Finals, with Safaricom Hook providing 5G power, fan zones, and interactive gaming experiences.

East Africa Crowns First PUBG Mobile Africa Cup Champion as Safaricom Hook Powers Historic Finals

September 21, 2025
Kenyan Business Feed

We focus on news, analysis, and reports about Kenyan business, covering sectors like agriculture, finance, tourism, and technology.

Categories

  • African
  • Agribusiness
  • Courts
  • Education
  • Health
  • Hospitality
  • Manufacturing
  • NetWorths
  • News
  • Reports & Analysis
  • World Business

Popular News

  • First look at the prison where El Chapo may live for the rest of his life

    First look at the prison where El Chapo may live for the rest of his life

    2157 shares
    Share 1040 Tweet 466
  • Sameer Africa CEO Sacked

    1804 shares
    Share 750 Tweet 439

Recent News

Tourism CS Rebecca Miano joins Samburu leaders at the Maralal Camel Derby, which draws 30,000 visitors and boosts cultural tourism in northern Kenya.

Maralal Camel Derby Draws 30,000 Visitors as Festival Anchors Samburu on Global Tourism Map

September 28, 2025
Kenyans to enjoy free entry to all national parks on World Tourism Day as government promotes conservation and domestic tourism.

Free Entry to National Parks Announced for World Tourism Day as Sector Pushes Sustainability Agenda

September 28, 2025
  • Home
  • African
  • News
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF

No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF