Parliament is seeking public input on the Tourism (Amendment) Bill, 2026, which proposes major reforms in Kenya’s tourism sector, including the merger of state agencies with overlapping functions.
The Bill seeks to amend the Tourism Act, Cap. 381, by consolidating tourism research, market intelligence and financing functions to improve efficiency, accountability and service delivery.
The proposed reforms include dissolving the Tourism Research Institute (TRI) and Tourism Finance Corporation (TFC), with their functions, assets and liabilities transferred to the Kenya Tourism Board (KTB).
The Departmental Committee on Tourism and Wildlife says the Bill seeks to “streamline the management of the tourism sector by merging overlapping state agencies and consolidating their functions for greater efficiency, accountability and service delivery hence prudent use of public funds.”
Under the proposed changes, KTB would take over tourism research and market intelligence, including collecting and analysing information on tourism products, market needs, industry trends and sustainable tourism.
The board will also be required to publish tourism research findings and statistics annually and disseminate them to industry stakeholders.
The restructuring would give KTB a significantly expanded mandate, making it a central institution for tourism marketing, research, data and intelligence.
The Bill contains transitional measures intended to minimise disruption. Assets, rights, liabilities, agreements and ongoing legal matters belonging to TRI and TFC will be transferred to KTB, if the bill is passed into law.
Licences, certificates, approvals and permissions issued by the two institutions would remain valid until expiry or lawful revocation, while pending applications would be transferred to KTB for determination.
Employees of the two institutions would, upon commencement of the new law, be deployed to the Public Service Commission.
The proposed reforms also seek to broaden the role of the Tourism Fund.
The Fund will support development of tourism products, services, events, establishments and facilities, as well as marketing, promotion and branding of Kenya in local, regional and international markets.
It would also finance tourism safety and security programmes, data collection and analysis, research and tourism intelligence.
Another proposed function is financing a tourism sector safety communication and crisis management centre to be established and managed by the Ministry.
The Fund would further support training and capacity development in tourism and hospitality institutions, innovation, development of tourism standards and resource mobilisation for tourism activities.
County governments are also set to benefit , with the bill providing for joint tourism projects to be financed through matching grants based on an agreed ratio.
The Fund’s financing base would also be expanded to include proceeds realised under the Air Passenger Service Charge Act.
For the tourism industry, the reforms could result in a more centralised system, with KTB assuming responsibilities previously spread across specialised agencies.
The proposed changes are now subject to public scrutiny before Parliament considers the legislation.
If enacted, the reforms would mark one of the biggest changes to Kenya’s tourism institutional framework, with the focus shifting towards consolidation, broader financing of tourism development and stronger use of research and market intelligence in driving the industry.
This, as Kenya moves to strengthen its tourism sector with a target of at least five million annual international arrivals by 2027.
According to Tourism and Wildlife CS Rebecca Miano, updating legal frameworks like the Tourism Act and the National Tourism Policy is central to driving future tourism numbers and economic growth.
The ministry is among those that have over the years been targeted for mergers since the recommendations were made in October 2013 by a Presidential Task Force on Parastatal Reforms.
Tourism and Wildlife oversees approximately 13 main parastatals and semi-autonomous state agencies across its various state departments.
Cabinet last year has approved the merging of some 42 state-owned enterprises, cutting the number to 20 in a move meant to cut costs and boost efficiency.
This is meant to streamline government operations, reduce waste and curb excesses amid increasing fiscal pressures arising from constrained government resources and the growing public debt burden.
Many state corporations have struggled to meet their contractual and statutory obligations, leading to continued accumulation of pending bills.
