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Investment Opportunities Available
Within the Tourism and Hospitality
Sector in Kenya
By
Dr. Ibrahim Mohamed
Principal Secretary
Ministry of East African Affairs, Commerce and Tourism
Department of Commerce and Tourism
Content
Background
Reasons to Invest in Kenya’s tourism Sector
Investment in New Tourist Attractions
Investment in Accommodation Facilities
Investment in Food and Beverage Services
Investment in Travel Facilitation
Investment in Tourism and Hospitality Training
Tourism Support Infrastructure
Financing Models
Investment Incentives
Background

Economic Contribution of Tourism
 10% of the GDP
 A leading Foreign Exchange Earner (20%)
 9% of Total Wage Employment
 Identified as one of the key economic drivers under
Vision 2030
 Tourist arrivals projected to increase from 1.7 million
in 2012 to 3 million 2017

Kenya’s tourism Product
 Diverse wildlife, beautiful scenery, wilderness,
pleasant climate & white sandy beaches
 Rich cultural and historical heritage
Reasons to Invest in Kenya’s Tourism &
Hospitality Industry

Fully liberalized economy with a free foreign exchange
regime

Strategic location –for Eastern & Central Africa with a
coastline and a port at Mombasa (new port at Lamu
being developed)

Massive infrastructural development going on or
planned. E.g LAPSSET Project, Standard Gauge Railway,
Expansion of JKIA

Developed Air transportation system (Regional hub)
Reasons to Invest in Kenya’s Tourism
& Hospitality Sector

Membership to regional trading blocs COMESA, EAC

Prospects for Oil, natural gas and Coal to reduce
cost of energy

Devolved system of governance to open up
investment opportunities in counties.

Improved regulatory and licensing regime e.g. Onestop shop initiative.
Investment in New Tourist Attractions
and Niche Tourism Products

Development of 3 high end resort cities in Isiolo,
Turkana and Lamu (Land identified in Isiolo and
Turkana).

Investment in conference facilities in major cities
e.g Nairobi, Mombasa, Kisumu

Proposed sites for conference facilities include
Mombasa and Nairobi

Health and Medical Tourism

Agro-tourism

Cultural – Heritage Tourism
Investment in New Tourist Attractions and
Niche Tourism Products

Sports tourism

Golf resorts

Water-sport facilities
and marina across
Kenyan water ways
Vipingo Ridge - Kilifi
English Point - Mombasa

Shopping malls

Recreational facilities
and theme parks
Investment in Accommodation Facilities

We require 30,000 additional beds in
high quality accommodation facilities
by 2017

International standard hotel at Bomas
of Kenya adjacent to Nairobi National
Park (80 acres available)

Development of a Lake View Resort
in Kisumu (20 acres available)

Hotels in the proposed Integrated
cities e.g Konza and Machakos

Real estate facilities apartments and
Homestays
Investment in Accommodation Facilities
(Contd)

Eco-lodges and Luxury Tented Camps

2 sites in the Meru Conservation Area

6 sites –Western region

11 sites –Tsavo East & West

1 site - North-Eastern (Marsabit
Nat.Reserve)

5 sites – Northern Area (Sibilio, L.Turkana,
L.Baringo and L.Bogoria

Other sites outside protected areas
Eco-lodge facility
Investment in Food and Beverage
Services

Specialty restaurants –
expanding markets demand
for diversified cuisine

Outside catering services
Investment in Travel Facilitation

Regional and
domestic air services
e.g Local charters,
low cost airlines

Tour Operations

Travel Agents

Short-duration
cruises (Coast,
L.Victoria)
Investment in Tourism & Hospitality
Training

Ronald Ngala Utalii College
– 60 Acres in Kilifi, Coast

Encouraging development of
other privately owned
institutions
Investment in Tourism Support
Infrastructure

Superhighways e.g from Mombasa (Kenya) to Kigali
(Rwanda), Moi Int. Airport – Milindi Road

Proposed mass rapid transit system will require
investments in buses, traffic control systems, etc

Power generation plants (Geothermal, Hydropower,
wind power, etc)

Renewable energy equipment

Telecommunication services
Financing Models

Short –term and long-term loans by Tourism
Finance Corporation (Kenya Tourism
Development Corporation)

Public Private Partnerships (PPP)

Build Operate and Transfer (BOT): is a form of
project financing, wherein a private entity receives a
concession from the private or public sector to
finance, design, construct, and operate a facility
stated in the concession contract.

Commercial Bank loans
Thank You