Tourism Levy

The tourism levy is a tax imposed under the Tourism Act, 2011. It is paid by those engaged in regulated tourism activities and services listed in the Act. All tourism levy payments are deposited into the Tourism Fund established by the Act.

The Fund is the legal successor to the Catering and Tourism Development Levy Trustees, which had existed since 1972 under the Hotel and Restaurant Act. This Act was repealed when the Tourism Act came into effect.

The Tourism Levy is paid by the owner or any business of every regulated tourism activity and service under the Tourism Act 2011 schedule. Some of the businesses and service activities include:

• Class “A” Enterprises : Hotels , Members clubs, Motels, Inns, Hostels, Health and spa resorts, Retreat lodges, Ecolodges, Tree houses, Floatels, Service flats, Service apartments,Beach cottages,Holiday cottages, Game lodges, Tented camps, Safari or mobile camps, Bandas,Cultural homes and centres, Villas, Homestays, Guest houses and Time shares.
• Class “B” Enterprises : Restaurants; and Other food and beverage services.
• Class “C” Enterprises :  Tour or safari operators, Tourist service vehicle hire, Local air charter, Travel agency, Water sports, Balloon operators; and Boat excursions.
• Class “D” Enterprises : Game fishing outfitters, Enterprises offering camps and camping equipment for hire, Nature parks, Nature reserves, Nature trails, Game ranches, Amusement parks and Non-citizen tour leaders or guides.
• Class “E” Enterprises : Local traditional boat operators, Professional safari photographers, Curio vendors, Private zoos, Citizen tour leaders or guides and General vendors and Beach operators.
• Class “F” Enterprises : Entertainment facilities.
• Class “G” Enterprises :  Conference and event services.
•  Class “H” Enterprises : Tourism and hospitality training institutions.

The levy is charged at the rate of 2% on the gross sales derived from the sale of accommodation, food, drinks, and all other services offered in scheduled establishments.

The levy is collected from establishments charging a minimum of KES 250 per person per night, including the provision of breakfast meals or any other services.

It is also levied on restaurants making minimum gross sales of KES 3 million per annum.

The revenue generated from the Tourism Levy is used to fund various initiatives, such as

• Financing the development of tourism products and services.
• Financing the marketing of Kenya as a tourist destination through the Tourism Board.
• Financing the activities of the Protection Service.
• Financing the tourism research, tourism intelligence and the national tourism information management system.
• Financing the activities of the Tourism Sector Safety, Communication and Crisis Management Centre.
• Financing training and capacity development activities of the College and of such other tourism hospitality training institutions as may be established under the Act.
• Mobilize resources to support tourism-related activities.

1. Levy Payment and Penalty

• Payment of the Levy : The Levy for each month must be paid by the 10th of the following month. If the 10th is not a workday, payment is due on the last workday before the 10th.
• Late Payment Penalty : Payments received after the 10th of the following month incur a KES 5, 000 penalty. An additional 3% penalty applies on the levy amount for each month or part thereof that the payment remains unpaid.

2. How To Pay The Levy

The levy is paid using the eLevy Portal which is an innovative web-based system developed by the Tourism Fund to simplify the 2% Tourism Levy remittance process.

It offers features like generating payment e-slips, filing monthly sales returns, Levy compliance checker and providing digital payment options such as mobile money, bank transfers, and RTGS/EFT.

1. Monthly Return Filling : The Tourism Act requires that every owner maintain a monthly sales record and file a return of the sales made on accommodation, food, drinks, and all other services.
2. Fine and Penalty : Failure to pay the levy a person is liable to a fine not exceeding KES 20,000 or imprisonment for a period not exceeding 6 months, or both.

The Tourism Fund is a statutory body established by an Act of Parliament, section 66 of the Tourism Act , 2011. It mobilizes resources and finances tourism development in Kenya. The fund administers the Tourism Levy to support a sustainable tourism industry in Kenya.

Beneficiaries of Tourism Fund Levy

• Kenya Tourism Board (KTB).
• Kenya Utalii College.
• Tourism Police Unit.
• Students in hospitality industry.
• Meetings, Incentives, Conferences, and Exhibitions (M.I.C.E) Secretariat.

Tourism Fund

eLevy System