Ministry proposes separation of tourism levy collection and funds management
Tourism PS Julius Bitok said the recommendations mirror the complementary and specialised roles played by the KRA and the CBK.
On August 20, the Ministry of Tourism and Wildlife proposed separating the collection of levies from hotels and restaurants from managing the funds, aiming to enhance efficiency and transparency. The Tourism Fund currently collects two percent of revenue from regulated hotels and restaurants and distributes the money to government-owned tourism institutions.
The proposed changes would also grant the Cabinet Secretary the authority to formulate the Fund's operational policy and determine disbursement conditions. Tourism Cabinet Secretary Rebecca Miano explained that these amendments were necessary to effectively fund tourism activities and align the sector with current realities, responding to emerging opportunities and providing a stronger foundation for future growth.
She emphasized that the reforms would strengthen coordination, improve institutional efficiency, and create a more enabling environment for investment and sustainable growth in the tourism sector. Tourism Principal Secretary Julius Bitok noted that these recommendations align with the approaches used by the Kenya Revenue Authority and the Central Bank of Kenya, where collection and allocation are separated.
The proposed changes mirror the complementary roles played by these institutions, with KRA collecting revenues and CBK managing allocations. The National Assembly Tourism Committee, chaired by Maara MP Kareke Mbiuki, is currently reviewing the Tourism Amendment Bill, which also includes proposals to merge the Kenya Tourism Board and Tourism Research Institute and restructure selected Semi-Autonomous Government Agencies.
Mbiuki emphasized the need for extensive public participation in the amendment process to build consensus and address sensitive issues, including expanding the tax base for applicable levies beyond the current hospitality industry.
Written by urgent.news from Capital FM Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
