Tourism Fund, a state corporation under the Ministry of Tourism and Wildlife, has issued a directive to serviced apartment owners, homestays, and villa operators, to comply with the Tourism Levy.
In a notice dated February 27th, the Ministry announced that, in accordance with Sections 66 and 105 of the Tourism Act, The Ninth (9th) Schedule of the Tourism Act, Tourism Fund Regulations 2015, and Tourism Levy Order 15, all Serviced Apartments are required to adhere specifically to Order 2 of the Tourism Levy Order.
As per the order, owners of the establishments categorized as Class A & B enterprises under the Ninth Schedule of the Tourism Act are required to pay a 2% levy on their gross monthly receipts from their sales.
“There shall be paid by the owner of Tourism Activities and Services Specified in class A & B enterprises, a levy at the rate of Two per centum (2%) of gross receipts from the monthly sale of food, drinks, accommodation and all other services,” reads part of the notice.
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Both Serviced Apartments, Homestays, and Villas are categorized as Class A and B enterprises in the Ninth Schedule.
The Tourism Fund was established under section 66 of the Tourism Act 2011 (Cap 383) Laws of Kenya.
This levy is crucial for the Tourism Fund to fulfill its core mandate of mobilizing resources for tourism industry development projects, marketing initiatives, and community-based tourism initiatives.
This is achieved through the Tourism levy as stipulated in Section 105(1) of the Tourism Act.
Tourism Fund Warnings on Penalties
The directive however emphasized that failing to pay the levy constitutes an offense and can lead to penalties as outlined in the Tourism Fund Regulations and the Tourism Levy Order.
“Take notice that any person who fails to pay any amount payable by him as the levy on or before the prescribed date commits an offense and is liable to penalties in Regulation 3(2) of Tourism Fund Regulations in addition to such other general penalties imposed under Regulation 17 of Tourism Fund Regulations as read together with the provisions of the Act,” read part of the notice.
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Additionally, non-compliance within 30 days of the notice will trigger enforcement proceedings against the establishment.
“Take further notice that failure to comply within 30 DAYS from the date of this Notice shall result in enforcement proceedings against you under the provisions of the Tourism Act, Tourism Fund Regulations, and Tourism Levy Order,” the body said in a notice.
Service apartments owners are urged to contact Tourism Fund by email on [email protected] or call +254 020 2714901/+254 728 337 499 to inquire any information about the levy.
