Three managers of hospitality establishments in Nakuru County have been charged in a Naivasha court for allegedly failing to remit the mandatory 2% tourism levy, a violation of the Tourism Act, Cap 38, Laws of Kenya.
Diana Mumbi, the manager at Elmar Resort and Spa, appeared before the Naivasha Law Court where she was accused of willfully failing to remit tourism levy arrears totaling Ksh.923,266.44. The alleged offenses cover the period from July 2023 to June 2024. Mumbi denied the charges and was released on a cash bail of Ksh.20,000.
In separate but related cases, John Ngure Mahta, a director at Crayfish Camp, and James Munene Moses, a director at Makuti Pub, were also charged with similar offenses. They both pleaded not guilty to the charges brought against them.
The charges stem from provisions under Section 105(1) as read with Section 105(5) and Section 112(2) of the Tourism Act. The Act mandates all regulated tourism establishments listed under the Ninth Schedule to remit a 2% levy on revenues collected. The levy is intended to support the Tourism Fund, a state corporation tasked with financing development and marketing initiatives in Kenya’s tourism sector.
Failure to comply with this legal obligation constitutes a criminal offense and is punishable by fines or imprisonment as stipulated in the Act. The Tourism Fund has been instrumental in funding tourism infrastructure, training, and promotional activities, all aimed at boosting Kenya’s competitiveness as a global tourist destination.
Legal experts note that increased enforcement of levy collection is a signal of the government’s intent to enhance accountability within the sector. The case has also spotlighted the critical role of tourism levies in sustaining the broader tourism economy, particularly in the wake of post-pandemic recovery efforts.
The court has scheduled subsequent hearings for the accused, and the Tourism Fund is expected to intensify compliance checks across the country. This case serves as a reminder to operators in the tourism and hospitality industry of the importance of fulfilling their statutory obligations.
