Tourism Ministry Proposes Tourism Fund Collects Hotel Levies As CS Oversees Management

The Tourism Ministry has proposed a new framework for managing hotel levies that would separate revenue collection from the oversight and disbursement of the funds.

According to the Ministry, the Tourism Fund should retain the role of collecting levies while the Cabinet Secretary oversees the management of the funds.

Appearing before the Departmental Committee on Tourism and Wildlife on August 20, Tourism Cabinet Secretary Rebecca Miano said the changes were necessary to align the law with the realities of the modern tourism industry.

“We therefore need to amend and modernize the law so that it reflects the realities of the sector today, responds to emerging opportunities and provides a stronger foundation for its future growth,” Miano said.

She said the reforms would improve coordination between tourism institutions while creating a better environment for investment, innovation and sustainable growth.

Tourism Ministry Wants Cabinet Secretary to Oversee Hotel Levy Funds

Tourism Ministry Principal Secretary (PS) Julius Bitok compared the proposed arrangement to the relationship between the Kenya Revenue Authority and the Central Bank of Kenya, where separate institutions handle revenue collection and management.

“We are borrowing the approach underpinned by the Public Finance Management where KRA collects money through eCitizen and deposits the funds with CBK for allocation through Treasury,” Bitok said.

He said the proposed system would provide a more structured flow of tourism revenue and enable the Ministry to plan and implement programmes more effectively.

The Bill also proposes merging the Kenya Tourism Board with the Tourism Research Institute and restructuring selected semi-autonomous government agencies as part of wider efforts to streamline the sector.

Committee chairperson Kareke Mbiuki…