Tourism
Kenya is one of the world’s most popular tourism destinations attracting millions of tourists over the past years. The country is endowed with attractive tourist sites, rich culture, striking geographical diversity and landscapes ranging from beautiful beaches, to animal parks and archeological sites.
The tourist destinations are well distributed all over the country. Currently, Kenya has six properties inscribed on the World Heritage list, which are: Fort Jesus Mombasa, Lamu Old Town, Sacred Mijikenda Kaya Forest and Natural Properties which are Kenya Lake System in the Great Rift Valley, Lake Turkana National Parks and Mount Kenya Natural Forest.
The tourist destinations are well distributed all over the country. Currently, Kenya has six properties inscribed on the World Heritage list, which are: Fort Jesus Mombasa, Lamu Old Town, Sacred Mijikenda Kaya Forest and Natural Properties which are Kenya Lake System in the Great Rift Valley, Lake Turkana National Parks and Mount Kenya Natural Forest.
Lamu Old Town
Lamu Old Town is an exclusive tropical island and one of the oldest best preserved Swahili settlements in East Africa. It is a major center for the study of Islam and Swahili cultures with many elites visiting for educational purposes. It is built in coral stone and mangrove timber. Lamu is also characterized by the simplicity of many structural forms enriched by ideal features such as elaborately carved wooden doors, verandas, and inner courtyards. |
The Kenya Lake System
The Kenya Lake System is located in the Great Rift Valley. It is an outstanding natural beauty consisting of relatively shallow lakes which are, Lake Bogoria, Lake Nakuru, and Lake Elementaita. The region is a home for sizable animals such as the Black rhinos, Rothschild giraffes, lions and cheetahs. It is also a habitat to 13 globally threatened bird species and the single most important foraging site for the lesser flamingo. The area covers a total of 32, 034 hectares. |
Lake Turkana National Parks
The Lake Turkana is a serene tourist site serving as a study centre for plant and animal communities and a rich animal habitat. It is a stopover for the migrant Waterfowl and a breeding area for the Nile crocodile, hippopotamus as well as various venomous snakes. The Lake is the most saline of all Africa’s big lakes. Many educationists visit the Koobi Fora deposits, an archeological site, which is rich in mammalian and fossil remains. The site has contributed a lot to the understanding of paleontology than any other site on the continent. |
Mount Kenya Natural Forest
Mount Kenya is an extinct volcano with a very impressive landscape with four secondary peaks and 12 remnant glaciers. The four secondary peaks sit at the head of the u-shaped glacial valleys. It is the second highest mountain in Africa (5, 199m) and has forested middle slopes. |
Investing in Kenya's Tourism Industry
The Government is working towards fulfilling the 2012 vision of receiving 2 million tourists in Kenya annually. Kenya has experienced a 15% tourist growth since 2009. The country recorded a total of 1,095,945 tourist arrivals in 2010, hitting the highest figure ever. The numbers have since gone up.
The tremendous growth is posing new opportunities for new investors and for businesses that are willing to step up their services to meet current international needs. Kenya Tourist Development Corporation is mandated to develop and diversify Kenya’s Tourism industry, by financing and offering advisory services to new investors and businesses in the tourism industry.
The Government policy aims at extending facilitation measures in favor of private sector investment through The Ken Invest, which is a 'one-stop shop' for the facilitation and processing of foreign investment.
Summary of current incentives specific to tourism that have been put in place:
1. The Government, upon application, exempts import duty and VAT on the following items and equipment for hotel construction and refurbishment: washing machines, kitchen ware, cookers, fridges and freezers, air conditioning systems, cutlery, televisions, carpets, furniture and linen and curtains. All other items and equipment required by hoteliers are only VAT exempt upon application for construction and refurbishment.
2. Exemption from VAT - Materials and Equipment for use in the construction or refurbishment of Tourist Hotels. All materials and equipment, excluding vehicles and goods for regular repair and maintenance, the purchase or importation of which is approved by the Permanent Secretary to the Treasury, for use in the construction or refurbishment of tourist hotels, subject to the production of such evidence as the Commissioner may require as to the quantity, quality and type of good required from the project.
3. Kenya provides the following guarantees to local and foreign investors:
Guarantee Against Expropriation
The Constitution of Kenya provides guarantee against expropriation of private property, which may occur for reasons of security or public interest. In such a case, a fair and prompt compensation is guaranteed.
Repatriation of Capital and Profits
Capital repatriation, remittance of dividends and interest are guaranteed to foreign investors under the Foreign Investment Protection Act (FIPA) - Cap 518. Investors can repatriate:
- After tax profits, including retained profits which have not been capitalized;
- The proceeds of the investment after payment of the relevant taxes;
- Principal and interest associated with any loan.
Identified Projects in the Tourism Sector
The Tourism Ministry has aligned its mandate with Vision 2030 by engaging in projects that will bring about the desired growth in the tourism industry. The goal is to steer Kenya towards becoming “a top 10 long haul tourist destination offering a high-end, diverse, and distinctive visitor experience”. The success of these projects is dependent on several key issues that have in the past hindered growth in the tourism sector.
As part of the overall goal of promoting the tourism sector, the government of Kenya through the Kenya Tourist Development Corporation and other partners, will undertake the following projects:
Development of 3 Resort Cities
These cities will be located in Isiolo, Diani and Kilifi. The first resort city will be constructed in Isiolo, in order to capitalize on the rich tourism potential presented by the presence of Mt. Kenya, Meru National Park, the Aberdares, as well as Samburu National Park. All these are located in areas neighboring Isiolo. The project is expected to turn Isiolo town into a major tourist destination and a regional hub. It will open up the northern part of the country, thereby attracting more investments. The resort city in Kilifi will be a family-friendly resort targeting high-income tourists, while the Diani resort city will have a cultural theme, with emphasis on showcasing the rich culture of Kenyan communities and educating tourists about Kenya’s culture and heritage.
Business and Conference Tourism Projects
Kenya has a large potential for business and conference tourism owing to its location and easy international connection. In order to harness this potential, there is a need to build ultra modern convention and conference centers preferably in the Coastal region. This is because the coast accounts for approximately 57 percent of the total bed capacity. To cater for an increased number of business tourists, the government, together with private sector stakeholders will also promote investment in Hotels by international chains in major towns. Conference tourism is the largest and fastest growing segment of the modern tourism sector. It has a higher financial impact because travelers spend more than their leisure counterparts.
Park Initiatives
This involves branding of the most popular parks in order to offer high quality experience at premium rates. In the case of under-utilized parks, the existing facilities and infrastructure in these parks will be rehabilitated and expanded. Bed capacity in these parks require expansion and this can only be done by attracting new investment to the parks, as well as effective advertizing of the tourist attractions in these parks. The Kenya Wildlife Service has branded several parks including Mt. Elgon National Park, Saiwa Swamp National Park, Meru National Park, among others. Branding of parks has helped in several critical aspects including raising their profiles. This has in turn led to an increase in visitor numbers and revenues. Improvement of park infrastructure including roads, nature trails and other facilities will serve to enhance visitor experience.
Health Spas at Geothermal Sites
The Rift Valley region has several natural hot springs and fumaroles whose geothermal waters are considered to have curative properties. The major element chemistry of some of the geothermal waters in Kenya is similar to that of waters used at established balneological sites in other parts of the world. Development of health spas around these springs will serve as a core tourist attraction of benefit to visitors with stress related complications or those just seeking relaxation.
The project, Developing Health Spas, aims at using the abundant geothermal mineral water springs in the Rift Valley and western Kenya for the development of quality health spas. The most significant hot water springs are found in:
Eco-Tourism
Eco-tourism means more than just preserving wildlife for our visitors; it also means protecting our own world and its resources for the future benefit of Kenya, our people and our wildlife.
Eco-tourism and community wildlife and conservation ventures offer the visitor a personalized and rewarding wildlife experience that gives them a chance to appreciate, respect and protect our country’s wildlife.
The Eco-Tourism society of Kenya (ESOK) is currently undertaking the “Eco-Ratings” scheme project. This pioneering scheme- the first of its kind in Africa- means that Kenya’s hotels, lodges and camps will be able to apply for a special rating- which will rate their level of eco-friendliness.
Community based tourism and eco -tourism is a growing sector, globally. It currently accounts for 5% of the global tourism market and is growing at a rate of 20-30% annually. There are a growing number of community tourism projects in Kenya, ranging from Il Ngwesi and Tassia in the Laikipia area, Sarara in Namunyak, Shompole in the Magadi region and Losikitok in Amboseli.
The projects range in scale from complete community management to a partnership with an investor or trust who provides the capital to build the guest accommodation and related tourist facilities. The community provides the use of the land, through a lease and helps to ensure the protection of the local wildlife. Community members are often employed and trained in the tourism projects and benefit from wages, community development funds and involvement in spin off enterprises.
Water-based Tourism
Although Kenya has great potential for water-based tourism, this remains largely under-exploited. Particularly in fresh waters such as Tana River and Lake Victoria. Opportunities exist to develop fishing resorts as well as water sporting camps. In order to facilitate the development of such facilities, additional bed capacity is required around Lake Victoria and Ruma National Park.
Construction of Golf-City Nairobi
The project will be located in Railways Club Nairobi opposite Uhuru High Way, where 63 acres of land are available. The project will be composed of the following; 2 five-star hotels with 100 and 600 rooms, 9 hole golf course facility, exclusive cottages, golf club house with a modern gym and other facilities, conference room fully equipped with international features, exhibition rooms, world class shopping mall, Imax Theatre the first of its kind in Africa and adequate parking facilities for over 2000 cars. Feasibility study has been done.
Infrastructure
Kenya has sufficient infrastructure with a more than adequate trunk road network providing national and regional connectivity. The ministry of roads is also undertaking several road expansion and maintenance projects.
Kenya is a regional leader in air transportation. Kenya Airways is one of Africa’s top three international carriers, with an extensive network across the continent and a safety record up to international standards.
With regards to the development of airport infrastructure and services, a study done in 2005 on private sector participation in airports infrastructure and services in Kenya, showed some airstrips situated in tourist circuit areas of Masai Mara and south coast of Mombasa can be viably developed on Build Operate and Transfer (BOT) or Build Operate and Own (BOO) terms. The Jomo Kenyatta International Airport in Nairobi is one of the three main international gateways in Sub-Saharan Africa.
The tremendous growth is posing new opportunities for new investors and for businesses that are willing to step up their services to meet current international needs. Kenya Tourist Development Corporation is mandated to develop and diversify Kenya’s Tourism industry, by financing and offering advisory services to new investors and businesses in the tourism industry.
The Government policy aims at extending facilitation measures in favor of private sector investment through The Ken Invest, which is a 'one-stop shop' for the facilitation and processing of foreign investment.
Summary of current incentives specific to tourism that have been put in place:
1. The Government, upon application, exempts import duty and VAT on the following items and equipment for hotel construction and refurbishment: washing machines, kitchen ware, cookers, fridges and freezers, air conditioning systems, cutlery, televisions, carpets, furniture and linen and curtains. All other items and equipment required by hoteliers are only VAT exempt upon application for construction and refurbishment.
2. Exemption from VAT - Materials and Equipment for use in the construction or refurbishment of Tourist Hotels. All materials and equipment, excluding vehicles and goods for regular repair and maintenance, the purchase or importation of which is approved by the Permanent Secretary to the Treasury, for use in the construction or refurbishment of tourist hotels, subject to the production of such evidence as the Commissioner may require as to the quantity, quality and type of good required from the project.
3. Kenya provides the following guarantees to local and foreign investors:
Guarantee Against Expropriation
The Constitution of Kenya provides guarantee against expropriation of private property, which may occur for reasons of security or public interest. In such a case, a fair and prompt compensation is guaranteed.
Repatriation of Capital and Profits
Capital repatriation, remittance of dividends and interest are guaranteed to foreign investors under the Foreign Investment Protection Act (FIPA) - Cap 518. Investors can repatriate:
- After tax profits, including retained profits which have not been capitalized;
- The proceeds of the investment after payment of the relevant taxes;
- Principal and interest associated with any loan.
Identified Projects in the Tourism Sector
The Tourism Ministry has aligned its mandate with Vision 2030 by engaging in projects that will bring about the desired growth in the tourism industry. The goal is to steer Kenya towards becoming “a top 10 long haul tourist destination offering a high-end, diverse, and distinctive visitor experience”. The success of these projects is dependent on several key issues that have in the past hindered growth in the tourism sector.
As part of the overall goal of promoting the tourism sector, the government of Kenya through the Kenya Tourist Development Corporation and other partners, will undertake the following projects:
Development of 3 Resort Cities
These cities will be located in Isiolo, Diani and Kilifi. The first resort city will be constructed in Isiolo, in order to capitalize on the rich tourism potential presented by the presence of Mt. Kenya, Meru National Park, the Aberdares, as well as Samburu National Park. All these are located in areas neighboring Isiolo. The project is expected to turn Isiolo town into a major tourist destination and a regional hub. It will open up the northern part of the country, thereby attracting more investments. The resort city in Kilifi will be a family-friendly resort targeting high-income tourists, while the Diani resort city will have a cultural theme, with emphasis on showcasing the rich culture of Kenyan communities and educating tourists about Kenya’s culture and heritage.
Business and Conference Tourism Projects
Kenya has a large potential for business and conference tourism owing to its location and easy international connection. In order to harness this potential, there is a need to build ultra modern convention and conference centers preferably in the Coastal region. This is because the coast accounts for approximately 57 percent of the total bed capacity. To cater for an increased number of business tourists, the government, together with private sector stakeholders will also promote investment in Hotels by international chains in major towns. Conference tourism is the largest and fastest growing segment of the modern tourism sector. It has a higher financial impact because travelers spend more than their leisure counterparts.
Park Initiatives
This involves branding of the most popular parks in order to offer high quality experience at premium rates. In the case of under-utilized parks, the existing facilities and infrastructure in these parks will be rehabilitated and expanded. Bed capacity in these parks require expansion and this can only be done by attracting new investment to the parks, as well as effective advertizing of the tourist attractions in these parks. The Kenya Wildlife Service has branded several parks including Mt. Elgon National Park, Saiwa Swamp National Park, Meru National Park, among others. Branding of parks has helped in several critical aspects including raising their profiles. This has in turn led to an increase in visitor numbers and revenues. Improvement of park infrastructure including roads, nature trails and other facilities will serve to enhance visitor experience.
Health Spas at Geothermal Sites
The Rift Valley region has several natural hot springs and fumaroles whose geothermal waters are considered to have curative properties. The major element chemistry of some of the geothermal waters in Kenya is similar to that of waters used at established balneological sites in other parts of the world. Development of health spas around these springs will serve as a core tourist attraction of benefit to visitors with stress related complications or those just seeking relaxation.
The project, Developing Health Spas, aims at using the abundant geothermal mineral water springs in the Rift Valley and western Kenya for the development of quality health spas. The most significant hot water springs are found in:
- Around Lakes Bogoria and Baringo. The two are and are in Lake Baringo and Lake Bogoria National parks offering the additional opportunity to game watch.
- Around Lake Turkana at the Kenya-Ethiopia-Sudan border.
- Maria and Buru near Lake Nakuru.
Eco-Tourism
Eco-tourism means more than just preserving wildlife for our visitors; it also means protecting our own world and its resources for the future benefit of Kenya, our people and our wildlife.
Eco-tourism and community wildlife and conservation ventures offer the visitor a personalized and rewarding wildlife experience that gives them a chance to appreciate, respect and protect our country’s wildlife.
The Eco-Tourism society of Kenya (ESOK) is currently undertaking the “Eco-Ratings” scheme project. This pioneering scheme- the first of its kind in Africa- means that Kenya’s hotels, lodges and camps will be able to apply for a special rating- which will rate their level of eco-friendliness.
Community based tourism and eco -tourism is a growing sector, globally. It currently accounts for 5% of the global tourism market and is growing at a rate of 20-30% annually. There are a growing number of community tourism projects in Kenya, ranging from Il Ngwesi and Tassia in the Laikipia area, Sarara in Namunyak, Shompole in the Magadi region and Losikitok in Amboseli.
The projects range in scale from complete community management to a partnership with an investor or trust who provides the capital to build the guest accommodation and related tourist facilities. The community provides the use of the land, through a lease and helps to ensure the protection of the local wildlife. Community members are often employed and trained in the tourism projects and benefit from wages, community development funds and involvement in spin off enterprises.
Water-based Tourism
Although Kenya has great potential for water-based tourism, this remains largely under-exploited. Particularly in fresh waters such as Tana River and Lake Victoria. Opportunities exist to develop fishing resorts as well as water sporting camps. In order to facilitate the development of such facilities, additional bed capacity is required around Lake Victoria and Ruma National Park.
Construction of Golf-City Nairobi
The project will be located in Railways Club Nairobi opposite Uhuru High Way, where 63 acres of land are available. The project will be composed of the following; 2 five-star hotels with 100 and 600 rooms, 9 hole golf course facility, exclusive cottages, golf club house with a modern gym and other facilities, conference room fully equipped with international features, exhibition rooms, world class shopping mall, Imax Theatre the first of its kind in Africa and adequate parking facilities for over 2000 cars. Feasibility study has been done.
Infrastructure
Kenya has sufficient infrastructure with a more than adequate trunk road network providing national and regional connectivity. The ministry of roads is also undertaking several road expansion and maintenance projects.
Kenya is a regional leader in air transportation. Kenya Airways is one of Africa’s top three international carriers, with an extensive network across the continent and a safety record up to international standards.
With regards to the development of airport infrastructure and services, a study done in 2005 on private sector participation in airports infrastructure and services in Kenya, showed some airstrips situated in tourist circuit areas of Masai Mara and south coast of Mombasa can be viably developed on Build Operate and Transfer (BOT) or Build Operate and Own (BOO) terms. The Jomo Kenyatta International Airport in Nairobi is one of the three main international gateways in Sub-Saharan Africa.