Government targets coastal sites for tourism privatization

Kenya's Ministry of Tourism plans to privatize five beaches and four islands in Kwale, Lamu, and Kilifi counties to attract high-end investments. The strategy aims to develop luxury facilities while ensuring environmental and employment safeguards. Public feedback is being sought on the draft National Tourism Strategy 2025-2030.

The Kenyan Ministry of Tourism has unveiled its draft National Tourism Strategy 2025-2030, proposing the privatization of specific coastal sites to boost the sector through private investment. Targeted areas include four islands—Chale, Funzi, Kiwayu, and Manda—and five beaches: Takaungu, Msambweni, Vipingo, Kipungani, and Matondoni, all located in Kwale, Lamu, and Kilifi counties.

Privatization will occur via models such as private ownership, concessions, or long-term leasing. The initiative seeks to foster developments like luxury beach clubs, boutique hotels, private marine access points for yachts and diving, helipads, and airstrips. Specific plans include a golf resort at Vipingo, luxury wellness and spa facilities in Msambweni, an exclusive eco-lodge on Kiwayu Island offering sport fishing and diving, and barefoot luxury lodges with marine ecotourism on Funzi Island.

To ensure responsible growth, the ministry will impose requirements including minimum capital investment, environmental safeguards, employment quotas, and sustainability commitments. As stated in the strategy: "This will entail identification and designating specific beaches and islands for private investment under either private ownership, private concessions, or long-term island leasing models." It further notes: "The aim is to encourage the development of high-end facilities such as luxury beach clubs and boutique hotels, private marine access points (for yachts, diving, etc.), and helipads or private airstrips."

Additionally, a new beach classification framework will categorize sites into premium beaches, family and leisure beaches, ecotourism and cultural beaches, and adventure and sports beaches, modeled after the Kenya Wildlife Service's National Park Categorisation Framework. Each category will feature clear standards, branding, marketing strategies, investment promotion, and management programs.

Tourism Principal Secretary John Ololtuaa has called for public input, with participation sessions scheduled from October 27 to 29, 2025, nationwide. The draft is available on the ministry's website.

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