Kenya’s tourism sector could soon see major changes in how tourism levies are collected and managed, following a proposal by the Ministry of Tourism and Wildlife to separate the two functions. The Ministry says the move would improve transparency, accountability and efficiency while giving the government greater control over how funds are used to support the sector.
Highlights
- Tourism Fund would continue collecting tourism levies.
- The Cabinet Secretary would oversee management and disbursement of the funds.
- The current tourism levy is set at 2 per cent of revenue from regulated hotels and restaurants.
- Government wants to modernise the Tourism Act.
- MPs are also considering changes to tourism agencies and levy collection from alternative accommodation facilities.
Main Story
Ministry Wants Levy Collection Separated From Fund Management
The Ministry of Tourism and Wildlife has proposed separating the collection of tourism levies from the management and distribution of the funds.
The proposal was presented to the National Assembly Departmental Committee on Tourism and Wildlife during consideration of the Tourism Amendment Bill.
Under the proposed system, the Tourism Fund would remain responsible for collecting the levies, while the Cabinet Secretary would take charge of overseeing how the money is managed and allocated.
The Ministry believes separating the two responsibilities would create clearer accountability and improve the way tourism funds are used.
How the Current System Works
At present, the Tourism Fund collects a 2 per cent levy on revenue generated by regulated hotels and restaurants.
The money supports several government-owned institutions involved in the tourism industry, including the Kenya Tourism Board, Tourism Research Institute, Bomas of Kenya and Kenya Utalii College.
Under the proposed changes, the Cabinet Secretary would have powers to develop policies guiding the Fund, determine the amounts payable and establish conditions for distributing the money.
Miano Calls for a Modern Tourism Law
Tourism Cabinet Secretary Rebecca Miano told MPs that changes to the law are necessary because Kenya’s tourism industry has evolved significantly.
She said the legal framework needs to reflect current realities while creating room for new opportunities and future growth.
According to Miano, the reforms are intended to strengthen coordination between institutions, improve efficiency and create a better environment for investment and innovation.
The Ministry also expects the changes to support sustainable growth across the sector.
Government Draws From KRA and CBK Model
Tourism Principal Secretary Julius Bitok said the proposed separation of duties is based on the way public finances are handled through institutions such as the Kenya Revenue Authority and the Central Bank of Kenya.
He explained that the approach would create a clearer path from revenue collection to the management and allocation of funds.
Bitok said a more organised flow of tourism revenue would help the Ministry plan programmes more effectively while strengthening the financial systems supporting the industry.
Proposed Changes Go Beyond Levies
The Tourism Amendment Bill contains several other proposals aimed at restructuring the sector.
Among them is a plan to merge the Kenya Tourism Board with the Tourism Research Institute, alongside changes to selected semi-autonomous government agencies.
The broader goal is to bring Kenya’s tourism laws in line with international developments and strengthen the country’s competitiveness as a tourism destination.
MPs Want Airbnb Included
The committee has also raised questions about the growing alternative accommodation market.
Committee chair and Maara MP Kareke Mbiuki challenged the Ministry to consider expanding the tourism levy base beyond traditional hotels and restaurants.
He specifically pointed to Airbnb and other accommodation providers, arguing that the changing nature of the hospitality industry should be reflected in the country’s revenue framework.
Public Participation Planned
Mbiuki said the committee intends to conduct extensive public participation before making its recommendations on the proposed law.
He urged tourism stakeholders and members of the public to submit their views, particularly on areas likely to have a significant impact on the industry.
The committee has also received submissions from the Office of the Attorney General, the Kenya Law Reform Commission, the Tourism Research Institute and the Kenya Tourism Board.
If adopted, the proposed amendments could reshape how tourism revenues are collected, managed and channelled towards the institutions and programmes that support Kenya’s tourism industry.
As Kenya looks to modernise its tourism industry, the real test will be whether new systems can turn the money collected from the sector into visible improvements for both businesses and travellers.
