Hiring a chopper in Kenya is not something new, especially for the wealthy and politicians.
During the budget reading on Thursday, Treasury CS Ukur Yatani announced a new tax measure that will target the wealthy who buy and hire choppers.
If the new tax measures are introduced, it will lead to high charges of hiring choppers in the country.
Research by Datahom.com indicates that by June 2020, the cost of hiring choppers stood at between Sh150,000 – Sh400, 00 per hour.
The cost ranges depending on various factors like the type of helicopter. For example, top of the line Multi-engine turbine Helicopter usually cost more compared to single-engine helicopters. Airport and handling charges will also come into play in determining your rate. Most of the airports in Kenya levy Landing and Handling charges on Helicopters operating out of them.
The night halt charges are also incorporated in the hourly fee of hiring a chopper in Kenya. This charge is levied to take care of the expense for lodging, boarding, and transportation of the crew.
Lastly, the cost will be determined by fuel transportation. As per government regulation helicopters are required to carry fuel for estimated flying time + 45 minutes to complete the flight in case of any delay or diversion. The cost of this is passed on to the customer.
During the Thursday budget reading, Yatani pointed out that in a new tax measure persons seeking to hire or buy airplanes of an unladen weight not exceeding or exceeding 2,000 kilograms will now pay 14 percent in value-added tax (VAT). The move is aimed at collecting an additional Sh38.9 billion from wealthy individuals and industries.
Previously, the purchase of certain types of helicopters, airplanes, and aircraft gear as well as parts like tires did not attract any tax.