The Kenyan government has unveiled plans to privatise several prime coastal locations, including Chale, Funzi, Kiwayu, and Manda islands, alongside beaches such as Takaungu, Msambweni, Vipingo, Kipungani, and Matondoni. The initiative, part of the draft National Tourism Strategy 2025-2030, seeks to attract high-end investors and promote luxury tourism along the coast.
According to the Ministry of Tourism, the selected sites will be managed through various privatisation models including private ownership, concessions, and long-term leasing agreements. These arrangements aim to spur the development of luxury beach clubs, boutique hotels, private marine access points for yachts and diving, helipads, and private airstrips.
Among the notable projects envisioned are a golf resort in Vipingo, luxury wellness and spa facilities in Msambweni, and an eco-lodge on Kiwayu Island offering sport fishing and diving experiences. Funzi Island is also set to host barefoot luxury lodges and marine ecotourism retreats, enhancing Kenya’s appeal as a global luxury destination.
To ensure responsible investment, the ministry has pledged to establish minimum capital requirements, environmental safeguards, employment quotas, and sustainability commitments.
“This will entail identifying and designating specific beaches and islands for private investment under structured ownership and leasing models,” the draft strategy notes.
Additionally, a new beach classification framework will be introduced to position Kenya’s beaches under categories such as premium, family and leisure, ecotourism and cultural, and adventure and sports. This system will help diversify Kenya’s coastal offerings and attract a range of visitor segments.
Tourism Principal Secretary John Ololtuaa has invited the public to review and provide feedback on the proposed strategy through the ministry’s website. Public participation forums will run from October 27 to 29, 2025.
