The recent Kenya Airways’ major announcement that it would start daily direct flights from Nairobi to New York in October, with tickets already on sale, has no doubt had promising effects with hopes of sparking a lot of positive impact in the socio-economic sphere.
On October 28, 2 days after President Kenyatta’s 57th birthday, he will be getting on the first direct Kenya Airways flight to the United States of America. This is probably the best birthday gift he could ask for, not just for him, but a gift for all Kenyans.
The government, KQ’s top shareholder, has recently stepped up its campaign to actualize direct flights to America, with the Uhuru Kenyatta administration anticipating it will boost exports to the US and help jumpstart the tourism sector. This direct route from Nairobi to New York provides Kenya Airways the opportunity to reclaim its position as the premier airline in Africa, the true Pride of Africa.
New horizons beckon as KQ will now have direct flights to the US. This can be a boon for diaspora Kenyan’s who traditionally had to connect when returning to the US.
Not only has the move opened doors in the employment sector by creating more jobs but it’s also projected as a major boost to tourism and trade between the two countries. For example, a United Nations World Tourism Organization research shows that for every 10 tourists that visit, one new job is created. Direct access to Kenya will increase the natural propensity for tourists to choose Kenya as a destination due to ease of travel and naturally, the cost will also be significantly lower, therefore a multiple basis for a natural increase in the numbers of tourists.
The direct non-stop flight will cut flight time between the two cities by more than six hours, hence saving both time and money. Diaspora Kenyan’s living in the US should be called upon to consciously, as a show of patriotism/nationalism, choose to fly Kenya Airways when traveling home or when recommending flights to those from Kenya coming to visit them, especially because they are likely to choose to travel home or receive visitors from home more often now. Lucy, a Kenyan living in New Jersey is excited about the prospect of finally getting her nephews and nieces to visit her. Previously she has decried that she has been unable to see her family as often as she would like due to the difficulty and high cost of the multiple flight connections.
The securities investors have already started reaping benefits. Days after the announcement, Kenya Airways noticed a rise in market cap by Kshs 9.7 billion to Kshs. 98.3 billion. The same week also saw the airline’s stock closing at Kshs. 17.30 at the end of the week, up from Kshs. 15.60 at the beginning of that same week. This is an indication that there is more to come from the direct flights to New York. According to a market brief by Kingdom Securities, “Kenya Airways joined the day’s top gainers on the news of the expected direct flight to the US. The airline’s management anticipates its daily direct flights to the United States that it launches for the first time in October to boost annual revenue by 10 percent from 2019”
A new direct trade route created means numerous opportunities, some previously not viable due to connection time-lag and cost implications, have now become viable and Kenyan traders can now compete much more competitively with many other nations seeking to serve the high value consumption market in the US. The Export Promotion Council should work hard and preemptively to ensure that they open up and promote Kenyan produce in the US market. They will also need to address product specific sensitivities such as flower exports that ideally need to fly directly to Miami which is the main gateway and hub of the US flower market.
It should also be expected that it will also increase private investment from the US in Kenya as the US investor community get a sense of easier access into Kenya and an improved view due to an improved travel rating by the US government of Kenya as a destination and more investment prospectors visiting Kenya.
It must be reiterated that will be necessary for the government to take a multi-pronged view and approach to ensure multiple and optimal benefits are obtained within the shortest time and Kenya sets its mark strongly in accessing the US market. It will need to liaise with all the different industry stakeholders to ensure it understands and partners with each in dealing with each industry’s peculiarities and sensitivities to ensure the most appropriate approaches are taken in creating the best advantage for Kenyans and Kenyan produce at the earliest opportunity possible.
Paul Kihiu -Business Development Director C&R Group
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