Kenya’s tourism businesses could face new licensing, operating, and classification requirements under the Tourism (Tourism Enterprises) Regulations, 2026.
The Senate received the regulations published on July 10, 2026, under Legal Notice No. 127 of 2026 for tabling on July 17.
On September 17, a Senate Committee on Delegated Legislation engaged tourism sector stakeholders to gather their views on the regulations, which could introduce a charge of up to KSh 250,000 for businesses.
Representatives of the Tourism Professional Association, Kenya Association of Hotelkeepers and Caterers, Domestic Tourism Association, Tour Operators Society of Kenya, Kenya Association of Tour Operators, Kenya Association of Travel Agents, Kenya Coast Tourism Association, Kenya Association of Air Operators and Ecotourism Kenya appeared before the Senate committee.
According to the stakeholders, the framework that the Tourism Regulatory Authority (TRA) is responsible for implementing covers tourism businesses ranging from hotels to restaurants.
The regulations also cover tour operators, travel agencies, tourist transport providers, air charter operators, nature-based enterprises, and other businesses listed under the regulations.
Senate Committee Reviews Regulations
Committee Chairperson Tharaka Nithi Senator Mwenda Gataya noted that the committee would examine the concerns raised by the stakeholders and engage the regulator before making a decision.
He added that the committee would consider the submissions and engage the regulator before deciding whether to annul or accede to the regulations.
“We have heard your concerns and the Committee will carefully interrogate every issue raised. We will engage the regulator and consider all the submissions before making an informed decision on whether to annul or accede to the Regulations,” said Mwenda Gataya.
Nominated Senators Betty Montet, Daniel Maanzo and Consolata Wakwabubi were also present during the stakeholder engagement.
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Licensing of Tourism Businesses
Under the new regulations, tourism enterprises covered by the law must obtain a renewable license from the TRA before operating.
The license expires on December 31 of the year it is issued.
During the license application, businesses must provide business registration documents, ownership details, the enterprise’s KRA PIN, and other documents depending on the category of tourism activity.
The regulations also provide for provisional licenses and allow the Authority to suspend, revoke or cancel a license where an operator breaches prescribed requirements.
New Tourism License Fees
The license fees under the regulation will vary according to the category, size and nature of the tourism enterprise.
Class A covers accommodation establishments including hotels, motels, guest houses, homestays, eco-lodges, holiday cottages, beach cottages, villas, game lodges and tented camps.
For establishments with one to 10 beds and a minimum accommodation charge of KSh 1,500 or less, the annual license fee is KSh 8,500. A similar establishment charging more than KSh 1,500 pays KSh 12,000 annually.
Further, for large establishments with more than 301 beds and facilities including restaurants, bars, swimming pools, banqueting and sporting facilities, health clubs, and a casino, together with a golf facility or racecourse, the annual license fee is set at KSh 65,000.
Tented camps and safari or mobile camps are subject to an annual license fee of KSh 72,000, while villas are charged KSh 37,000.
Additionally, game lodges attract annual fees ranging from KSh 30,000 to KSh 51,000, depending on their category and facilities.
Restaurants are classified under Class B, with annual license fees based on gross receipts. A restaurant that has not previously traded, or one with annual gross receipts below Ksh 2 million, pays Ksh 16,000 annually.
Those earning more than Ksh 2 million but not more than Ksh 3 million pay Ksh 20,500, and those with annual gross receipts above Ksh 7 million pay Ksh 85,000.
Tour Operators and Travel Agencies
Tour and safari operators, tourist service vehicle hire businesses, travel agencies, water sports and boat excursions fall under Class C.
A Kenyan tour or safari operator pays an application fee of Ksh1,000 and an annual license fee of Ksh21,500, applicable to tourist service vehicle hire, travel agencies, water sports, and boat excursions.
Local air charter and balloon operators pay an annual license fee of Ksh89,500.
A foreign tour or safari operator or travel agency pays a Ksh12,956 application fee and an annual license fee of about Ksh194,334. In contrast, foreign-owned local air charter and balloon operators pay an annual fee of about Ksh233,201.
In addition, a locally registered tourist vehicle or vessel attracts an annual sticker fee of Ksh1,000, while a foreign-registered tourist vehicle or vessel attracts a six-month sticker fee of Ksh64,778.
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Accreditation, Classification and Standards
The regulations provide separate accreditation and classification charges.
Class A and Class B enterprises seeking classification or reclassification must pay KSh 250,000, separate from the annual operating license fee and an accreditation fee of KSh 100,000.
In addition, the regulations establish mandatory operational standards for tourism enterprises covering hygiene, sanitation, food safety, fire safety, security, emergency procedures, waste management and service delivery.
Businesses must also meet requirements relating to staffing, customer care, and management of tourism facilities.
Environmental requirements include measures covering waste reduction, recycling and efficient use of water and energy.
Penalties
Under the new regulation, TRA will inspect tourism enterprises to establish compliance, as specified offences carry a fine of up to Ksh1 million, imprisonment for up to six months, or both.
The Authority can also suspend or revoke a license where an operator breaches the regulations or fails to comply with license conditions.
Businesses that falsely advertise an unauthorised classification or star rating can also face enforcement action.
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