NAIROBI, Kenya – International visitors and a stable economic environment are driving the sector’s growth. Experts from the East Africa Property Investment Summit will be in Nairobi to discuss and examine challenges in this growing market.
Kenya’s hospitality industry is booming, thanks to a growing middle-class, an increasing number of foreign visitors and a stable economy. Industry experts attribute this surge to the country’s unique blend of natural beauty, strategic location, and supportive government policies — all of which are attracting substantial investment in high-end tourism and hospitality.
The dynamics of the sector’s thriving will be one of the main topics at this year’s East Africa Property Investment (EAPI) Summit, a premier real estate event. The 12The th Nairobi will host the annual summit on May 8 and 9, 2025Over 450 investors, developers and real estate professionals from around the world will be attending. Participants will explore opportunities to capitalize on investment potential in Kenya, Tanzania (including Zanzibar), Uganda, Rwanda, and Ethiopia — countries showing promising signs of economic recovery and political stabilization.
Speak on the growth of hospitality industry Bani Haddad Founder and Managing director of Aleph Hospitality, highlights Kenya’s untapped potential.
Kenya is a good place to invest in hospitality due to the unique combination of its untapped potential, stability economics, strategic location and government incentives. A 35% increase in foreign visitors and an expanding middle class with disposable money are also factors. There is no doubt that demand for quality services in hospitality will continue to grow, providing opportunities for investors both locally and internationally.
Haddad’s Aleph Hospitality has grown to be the largest independent hospitality management company in Africa and the Middle East.
Mark Dunford, CEO Knight Frank Kenya, says that better air connectivity is crucial to maintaining this growth and the influx tourists into Kenya. Jomo Kenyatta International Airport should remain a hub in Sub-Saharan Africa with more long-haul flights and further investments into the other local airports.
Dunford.
Nairobi, Kenya’s capital and largest city, is served by Jomo Kenyatta International Airport.
Fiona Craw, Vice President of the Hotels & Hospitality Group at JLL AfricaKenya’s tourism sector is attracting significant investment in Nairobi, and Masai Mara. This growth is driven largely by demand from sectors such as corporate, leisure, MICE, (Meetings, Incentive, Conferences, Exhibitions) and government.
Nairobi’s role as an important economic and transportation hub in Africa, along with Masai Mara being a world-renowned safari destination, are factors that further drive this investment trend.
Craw states that ongoing infrastructure development, especially in Nairobi is improving accessibility and supporting Kenya’s efforts to establish themselves as a top MICE destination. This strategic positioning drives demand for high quality accommodation and modern meeting facilities.
says Craw.
Experts admit that, despite promising opportunities in the industry, several challenges are preventing its growth.
Kenya’s tourism industry is resilient and growing, but it also faces several challenges. These include security issues, regulatory hurdles and disruptions to the supply chains, as well as challenges in human resources. Businesses are further burdened by the high cost of funding and inflation-driven operating costs. Haddad Aleph Hospitality
He also adds: Kenya’s position as an investment destination of choice will be solidified if the private and public sectors work together to improve security and infrastructure. Business will be easier if land acquisitions and approvals are streamlined. This will reduce delays and costs. Diversifying the suppliers you use can help ease supply-chain issues, and investing in talent retention increases efficiency and quality of service.
Kenya’s growing luxury hospitality industry could be hampered by visa complications. Kenya is not the only country that faces visa challenges. Other countries on the African continent are also faced with similar issues.
The visa complexities in Africa is marked by the limited number of countries that offer visa-free travel to other African nations. It is often a lengthy and expensive process, which requires embassy visits and long procedures. The number of passports varies widely across the continent. Some countries enjoy extensive visa-free travel, while others are subject to severe restrictions. Instability in certain countries and concerns about security complicate the mobility of citizens.
Says Dunford, of Knight Frank Kenya Currently, the industry faces a variety of challenges. One of the easiest ways to resolve these issues would be by simplifying the visa/entry processes to encourage visitors.
Potential investors should also be aware of the oversupply, which is a factor that increases competition among hoteliers. JLL Africa’s Craw estimates Nairobi experienced a recent significant supply increase with over 2,000 additional hotel rooms added in only 18 months. In order to absorb the new inventory, it is anticipated that market performance will be negatively impacted throughout 2025.
She says
Daniel Trappler Senior Director of Sub-Sahara Africa Development at Radisson Hotel GroupCraw and Trappler agree that some areas of Nairobi are over-supplied with hotel rooms. Trappler states that, despite this, there are pockets of value in Nairobi that aren’t yet sufficiently supplied. The correct brand can capture market shares in Nairobi, and attract guests, especially if it is a brand that RHG doesn’t yet operate in the city. Investors who have the necessary capital can take advantage of the market. Trappler adds that the Radisson Collection entry-level luxury brand and Radisson RED lifestyle upscale brand would both serve owners well if built in the right locations. The group wants to expand its presence in Nairobi.
There are pockets of excellence and growth despite the intense competition and oversupply in hotel rooms. Marriott International has an established presence in Kenya with city hotels and safari lodges located in Nairobi, as well the Masai Mara. The company says that its business in Kenya is booming.
We continue to see an increase in demand for high-end experiences on the market. This allows us expand our luxury portfolio by adding urban hotels and safari resorts. Kenya is poised for sustained growth in all segments. Our commitment to the country includes expanding our footprint and supporting its tourism sector. Jugal Khushalani is Marriott International’s Senior Development Director in East Africa.
Experts in the hospitality industry agree that, despite some short-term difficulties, Kenya’s long-term outlook is positive. They have suggested innovative strategies to tackle these challenges and ensure sustained growth in Kenya’s luxury market. Solutions for sustainable growth include:
- Alternative financing modelsGovernment-backed incentives and public-private partnerships are effective ways to reduce the cost of new development.
- Sustainable tourism practicesIn order to keep up with the global trend of sustainable luxury tourism, high-end resorts adopt eco-friendly initiatives like solar energy use and marine conservation programs.
- Air connectivity enhancedContinued investment at the Jomo Kenyatta International Airport, as well as regional airports, will improve accessibility for long-haul travelers.
- Bespoke experiencesThe key to luxury travel is personalization. Exclusive offers like tailored cultural tours and beachfront villas are available to wealthy travellers looking for unique experiences.
Kenya’s reputation as the premier destination in Africa for luxury travel is set to be solidified by strategic investments, collaborative efforts and government entities working with private stakeholders. The country’s diverse offerings — from world-class safaris to coastal retreats — continue to attract discerning travellers seeking unforgettable experiences.
The 12The th East Africa Property Investment Summit Meeting will be held at Pullman Upper Hill in Nairobi, Kenya on 7 and 8. May 2025. Visit EAPI Summit for more details and to register to attend. https://EAPISummit.com.
