Jambojet, Kenya’s leading low-cost carrier, is preparing a major expansion into West and Southern Africa and further afield after annual revenue exceeded KSh13 billion.
Newly appointed chairman Ayisi Makatiani has set out plans to triple the airline’s fleet within five years as the Kenya Airways subsidiary continues to dominate the domestic market with a 53% share.
Fleet expansion to drive growth
Makatiani, who returns as chairman more than 10 years after co-founding the airline, told Newsroom.co.ke that demand remains strong.
“Try booking a flight to Kisumu or Mombasa today – you will probably not find a seat,” he said. “That shows there is still huge scope to add capacity.”
The airline currently operates around 11 De Havilland Dash 8-400 turboprops. It plans to add two aircraft in the next 12 months and steadily grow until the fleet is three times its present size within five years.
First phase stays regional
Initially Jambojet will increase frequencies on busy coastal and western Kenya routes while adding new destinations such as Kigali, deeper points in Tanzania, Ethiopia, South Sudan and Zanzibar – all within the roughly two-and-a-half-hour range of its existing aircraft.
Second phase introduces jets
The next step will see the introduction of longer-range jets able to fly five-hour sectors while maintaining the low-cost model.
“That will open up South Africa, West Africa and even North Africa,” Makatiani said. He declined to name specific cities or reveal the total investment required, noting only that new aircraft cost $30 million to $40 million each and the overall programme would run into hundreds of millions of dollars.
Jambojet intends to fund the expansion mainly through leasing rather than buying aircraft outright or taking large loans – the same pay-as-you-grow approach used since launch.
Learning from Kenya Airways’ past
The cautious strategy reflects lessons from parent company Kenya Airways, which suffered heavy losses after an aggressive global expansion under Project Mawingu and later required the Operation Pride restructuring.
“We watch unit costs very closely,” Makatiani stressed. “Every new aircraft must reduce overall costs through scale and must add profit.”
Who benefits from the growth
The low-cost model has already made flying accessible to first-time travellers, price-sensitive leisure passengers, small traders and domestic tourists. New routes are expected to attract shoppers visiting Nairobi and onward connection passengers at Jomo Kenyatta International Airport.
From its Nairobi hub Jambojet currently serves Mombasa, Eldoret, Kisumu, Malindi, Ukunda (Diani) and Lamu, with secondary services from Mombasa to Kisumu, Eldoret and Zanzibar. Domestic market share is forecast to rise another 10 percentage points over the next five years.
Launched in April 2014, Jambojet has become one of Africa’s few consistently profitable low-cost carriers despite high fuel prices and currency volatility.
