Sector is growing significantly, mainly due to international tourists and stable economic conditions. Experts will be at the upcoming East Africa Property Investment (EAPI) The Nairobi Summit will explore investment opportunities in this growing market, as well as addressing challenges.
Kenya’s luxury tourism sector is growing rapidly, thanks to an increase in international visitors, stable economic conditions, and a growing middle class. 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 dynamic of this booming sector will be the key focus at upcoming 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, 2025, will bring together over 450 international investors, real estate developers, and professionals. 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.
The growth of the hospitality sector is a topic that I will be speaking about. Bani Haddad is the founder and managing director of Aleph Hospitality, highlights Kenya’s untapped potential.
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“Kenya offers a unique opportunity for investment in the hospitality industry due to its combination of untapped capacity, economic stability and strategic location. Government incentives are also available.” Add to that, a 35% growth in international tourists and a growing Middle Class with disposable Income. There is no doubt that demand for quality services in hospitality will continue to grow, offering opportunities for local as well as international investors,” Haddad said.
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“Improving air connectivity is crucial to sustain this growth and the influx in tourists to Kenya,” says Dunford. Dunford says that the Jomo Kenyatta International Airport should remain a hub of Sub-Saharan Africa with more long-haul flights and further investments in other local airports.
Nairobi’s capital city, Nairobi is served by the international airport Jomo Kenyatta International Airport.
Fiona Craw, Vice President of the Hotels & Hospitality Group at JLL AfricaKenya’s hospitality industry attracts substantial investment, especially in Nairobi and Masai Mara. The growth of the hospitality sector in Kenya is largely due to the robust demand for services across all sectors, including corporate, leisure, MICE, conferences, exhibitions, and government.
Nairobi’s role as a major economic and transportation hub in Africa, along with Masai Mara’s global reputation as the premier safari destination, are factors that further drive this trend.
Craw says that ongoing infrastructure development, especially in Nairobi is improving accessibility and supporting Kenya’s efforts to establish themselves as a top MICE destination. Craw says, “This strategic position is driving demand” for high-quality accommodations and modern meeting facilities.
Despite the many opportunities in the industry, several challenges are preventing its growth.
The Kenyan hospitality industry is facing several challenges. These include security issues, regulatory hurdles and disruptions to the supply chains. “The high cost of finance and inflation-driven operating costs further strain business,” says Aleph Hospitality’s Haddad.
He says: “For Kenyan to cement its position as the premier global investment location, collaboration with the government and private sectors will be key to improving security and infrastructure. Business will be easier with the reduction of delays and costs associated with land approvals and acquisitions. Diversifying your suppliers will help you to solve supply chain problems, while investing in talent retention can boost service quality and efficiency.
Kenya’s growing luxury hospitality industry could be hampered by visa complications. Visa complications are not limited to Kenya. Many countries on the African continent also face the same challenges.
In Africa, visa complications are marked by a limited number of countries offering visa-free options. Only a small portion of these countries offer this option to their fellow African nations. It is often bureaucratic and expensive, and requires lengthy procedures and embassy trips. On the continent there is also a large disparity between passports. Some countries have a wide range of visa-free entry, while other countries face severe restrictions. The insecurity of certain regions and the political instability further hinder mobility.
Dunford, of Knight Frank Kenya, says: “There are many issues that the industry is facing at this time.” To encourage visitors, the easiest way to resolve these issues would be by simplifying the visa/entry processes.
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. Over 2,000 new rooms were introduced in only 18 months. As a result of the new inventory, she predicts that market performance will be under pressure through 2025.
Daniel Trappler is Senior Director of Development at Radisson Hotel Group for Sub-Sahara Africa.Craw and Trappler agree that some areas of Nairobi are oversupplied with hotel rooms. Trappler, on the other hand, says that certain nodes represent pockets of potential value that are still under-supplied. With the right brand, Trappler believes that the city could easily attract guests and capture market share, particularly with brands RHG has not yet established in Nairobi. 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, a company with a presence in Kenya, operates city hotels in Nairobi as well as safari lodges in Masai Mara. It says its business is growing.
Jugal Khushalani is Marriott International’s Senior Development Director in East Africa. The statement reads: “There continues to be an increased demand for high-end experiences on the market. We are therefore positioned to expand our portfolio of luxurious brands by launching urban hotels and safari resorts.” Kenya has a strong growth potential across all segments. We are committed to expanding our footprint and helping the tourism industry grow in Kenya.
Experts agree that Kenya’s tourism sector has a positive outlook despite the short-term challenges. The experts have come up with innovative strategies that will address these issues while maintaining growth on the 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.
Enhancing air connectivityContinued investment at the Jomo Kenyatta International Airport, as well as regional airports, will improve accessibility for long-haul travelers.
Bespoke experiencesTravelling in luxury is all about personalization. Exclusive offers like tailored cultural tours and beachfront villas are available to wealthy travellers looking for unique experiences.
Kenya, with its strategic investments and collaboration efforts between the government and private stakeholders is well-positioned for it to cement its reputation as Africa’s premier luxury travel destination. The country’s diverse offerings — from world-class safaris to coastal retreats — continue to attract discerning travellers seeking unforgettable experiences.
