Bridging the tourism investment gap

For 15 years, the Magical Kenya Travel Expo has chronicled the aspirations of Africa’s tourism sector. Its evolution from a national showcase to a continental marketplace is a narrative of genuine progress.

However, ambition alone does not build infrastructure or fund the visionary enterprises needed to secure the continent’s economic future.

The expo, which took place from October 1-3 at the Uhuru Gardens National Monument and Museum, addressed this profound disconnect between Africa’s tourism ambitions and the actionable capital required to realise them.

The integration of the African Tourism and Investment Forum (ATIF) into this year’s Magical Kenya Travel Expo brought a strategic focus to closing this critical investment gap. The ATIF discussion and deliberations ignited the continent’s unlocking of its vast, yet undercapitalised, tourism potential.

Kenya’s tourism earnings grew by 31.5 percent in 2023. The sector contributes a significant 8.5 percent to our gross domestic product and, as the Tourism Research Institute notes, supports more than 1.6 million livelihoods. Yet, without continued investment, this momentum will stall and the promise of inclusive prosperity will fade.

Continentally, the African Development Bank projects that tourism could become a $260 billion industry by 2030, but this forecast faces an estimated $1.8 billion annual infrastructure investment gap. Bridging it requires a deliberate, multifaceted approach to building resilient, inclusive, and sustainable tourism ecosystems.

That was the reason we embedded ATIF within the 2025 Magical Kenya Travel Expo.

The expo has long proven its value as Africa’s premier tourism marketplace, historically connecting thousands of delegates, hundreds of exhibitors, and a broad spectrum of globally vetted buyers. It has perfected the art of the travel sale, but the time has come to move beyond transactions and tackle the sector’s foundational issues: policy, capital and innovation.

ATIF shifted the conversation to those pillars, asking not just ‘what can we sell?’ but ‘how do we collectively build the Africa we envision through tourism?’

The theme, Magical Kenya: Unlocking Africa’s Potential through Sustainable Tourism, must be understood in its truest sense. Sustainability is not just about environmental conservation but rather creating an industry that is financially self-sufficient, resilient and capable of long-term growth.

This is where the forum’s function became critical. ATIF was designed to directly confront the investment gap by connecting Africa’s market-ready opportunities from eco-lodges and cultural heritage sites to smart tourism technologies with the investors, development finance institutions, and venture capitalists searching for them.

The expo is just the turning point. We must challenge ourselves and each other. Governments must move forward ready with streamlined policies that prove their investment readiness.

Investors must look beyond traditional assets to the transformative potential of community models and technology. And as an industry, we must collectively demonstrate that we are a unified, strategic sector worthy of significant, long-term capital.

The World Travel and Tourism Council forecasts that the sector could create 8.5 million new jobs in Africa by 2033, but that number is entirely conditional on investment flowing where it is needed most.

The forum was also the arena for essential dialogue between policymakers and the private sector. True progress hinged on this collaboration to improve the investment climate and dismantle the regulatory hurdles that impede cross-border enterprise under the African Continental Free Trade Area (AfCFTA).

The power of this focused investment is its ability to ripple outwards, stimulating the broader economy in ways that a simple tourism transaction cannot.

Capital directed into tourism does not remain isolated within a hotel’s balance sheet. It is the very force that funds the preservation of our culture, the development of creative industries like film, arts, music, the scaling of African-born technology, and the construction of green infrastructure. It empowers community-owned ventures, ensuring that economic benefits are distributed equitably and that local populations become the primary guardians of their own assets.

The setting of MKTE at Uhuru Gardens National Monument and Museum is a monument to freedom and pan-African unity, is deeply symbolic. Just as this site stands for Kenya’s historic struggle for freedom and unity, MKTE 2025, powered by ATIF, embodied Africa’s determined effort to unlock its own economic destiny through tourism.

The vision, the talent, and the opportunities have always been here and will always be within our grasp. What has been missing is a concerted mechanism to finance them at scale.

KRA sets new customs record with Sh85bn receipts in September

Revenue collections by the Kenya Revenue Authority (KRA) at border points hit a monthly record of Sh85.15 billion in September, the agency announced on Wednesday, attributing the milestone to reforms that have sealed loopholes and accelerated cargo clearance.

The historic performance shattered the previous record of Sh82.55 billion set in January this year.

APA Insurance’s bid to block payout for fire fails

The Court of Appeal has ordered APA Insurance to pay a manufacturing firm Sh58.6 million as compensation following a fire that gutted the firm’s premises, hardly two months after the insurance took effect.

The award is a 28.8 percent reduction from the Sh82.33 million that the High Court had awarded the manufacturer-Britind Industries Limited- in February 2023 before APA appealed the decision, claiming that the fire was ‘deliberately or wilfully’ started by the firm.

Kenya now opts to retire ‘expensive’ Sh55bn TDB loan

Kenya has opted to settle a syndicated loan of $430.55 million (Sh55.6 billion) from the Eastern and Southern African Trade and Development Bank (TDB), a sign the State could not meet the lender’s refinancing terms.

Treasury Cabinet Secretary John Mbadi said the multilateral loan was very costly, adding that while the government considered taking a new facility to repay it, the expense made refinancing unattractive.

Current account deficit widens to 2.1pc on increased imports

Increased importation of capital goods, including machinery and transport kits, pushed Kenya’s current account deficit to 2.1 percent of GDP at end of August 2025, compared to 1.6 percent a year earlier, indicating rising business activity and improving credit flows to the private sector.

The Central Bank of Kenya (CBK) says deficit widened to $2.84 billion (Sh367 billion) in August from $1.82 billion (Sh235 billion) a year earlier, but it is expected to moderate to $2.39 billion (Sh309 billion) or 1.7 percent of GDP by the end of the year.

World Bank pushes for higher VAT, excise duty

The World Bank has asked Kenya to consider additional consumption taxes like excise duty and value added tax (VAT) to clear mounting supplier arrears in what could spark fresh social unrest if adopted.

The multilateral lender wants high consumption taxes to clear pending bills, which rose to Sh526 billion in June from Sh421.6 billion in March, triggering business closures, layoffs and non-performing loans.

Coffee exports value nearly doubles in H1 amid reforms

The value of unroasted coffee shipped out of Kenya by exporters almost doubled to Sh35.4 billion during the first six months of this year, compared to Sh19.3 billion realised during a similar period in 2024 spelling a boon for farmers in the coming months amid ongoing reforms in the sub-sector.

Data from the Kenya National Bureau of Statistics (KNBS) shows that this year’s spike bucked a sustained falling trend observed since the period between July and December 2023, when the value rose to Sh23.1 billion, up from Sh21.3 billion during the preceding half.

Central Bank in eighth straight rate cut to boost uptake of loans

The Central Bank of Kenya (CBK) has followed its previous seven rate cuts with a further 0.25 percentage points reduction in the benchmark as it seeks to further aid the recovery of lending to businesses and households.

CBK’s benchmark lending rate, the Central Bank Rate (CBR), has eased further to 9.25 percent from 9.5 percent, making it the eighth consecutive interest rate cut by the monetary authority since August 2024.