Official: State-owned tourism facilities key to sector growth
Business
By
Sofia Ali
| Jan 22, 2026
Stakeholders in Kenya’s tourism and manufacturing sectors are calling for stronger support for locally made products and home-grown investments, saying the move could significantly improve the performance of state-owned tourism facilities and boost the wider economy.
The call comes as Kenya’s tourism sector continues its recovery, with improved performance at public hotels and lodges now viewed as a key driver of job creation, foreign exchange earnings and regional development.
Speaking at the Isuzu East Africa plant, Wanjohi Kangangi, Director of Sales and Marketing at Isuzu East Africa, highlighted the role of partnerships in strengthening state tourism properties, particularly in destinations such as Tsavo East and Tsavo West National Parks.
He said domestic tourism has become a major growth driver and that improving access and guest experience supports both visitation and local economic activity.
“This partnership between Isuzu and Kenya Development Corporation is strategic because it promotes local manufacturing while supporting tourism facilities,” Kangangi said, noting that increased tourist numbers translate into higher foreign exchange earnings and more jobs.
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Kenya Development Corporation (KDC) Director General Norah Ratemo said access to financing remains a major challenge for tourism operators.
She noted that through asset financing and other financial solutions, KDC is supporting investments that could help improve services and attract more visitors, particularly in the tourism sector.
State-owned tourism facilities have historically faced challenges such as ageing infrastructure, limited capital for upgrades and stiff competition from private operators. Addressing these issues is seen as crucial as Kenya targets three million international tourist arrivals in 2025 and higher numbers in the years ahead.
At the same event, the Acting Chief Executive Officer of Kenya Safari Lodges stressed the importance of human capital development, saying investments in staff training and service delivery are essential to creating memorable guest experiences that drive repeat visits.
Industry experts caution that challenges including global competition, rising operating costs, infrastructure gaps and growing sustainability requirements still persists. Adapting to changing global standards on sustainability and traceability is increasingly shaping travel decisions.
Tourism remains a vital pillar of Kenya’s economy, supporting millions of jobs and generating critical foreign exchange. Stakeholders say improving the performance of state-owned facilities backed by local partnerships, financing support and skills development will be central to sustaining growth and strengthening Kenya’s position in the global tourism market.