This archive report was first published on 6 December 2019.
On December 6, 2019, the hospitality industry in Kenya was facing a significant challenge due to the imposition of high licensing fees by the government.
The fees, which range from Sh8,500 to Sh46,000 per year, were introduced in 2015 under the Tourism Regulations 2014. The regulations require establishments to pay a 10 percent penalty every month for unpaid fees.
According to Alice Opee, the national chair of the Pubs, Entertainment and Restaurant Association of Kenya (Parek), the regulations have caused uncertainty and financial strain for many businesses.
Ms. Opee stated, 'Arrears dating back from the last four years have caused uncertainty. However, consultations are ongoing as members strive to pay some arrears and we hope it will be resolved early 2020.'
The Tourism Regulatory Authority (TRA) had requested the Treasury to waive the arrears, but the proposal was rejected.
Jack Omondi, the TRA compliance director, said, 'Through a discussion and request presented to us by Perak, we tried to engage the Treasury to waiver the arrears. However, it rejected the proposal.'
