Rubi Volkman
The Kenyan government has announced plans to privatise select public beaches and islands through private ownership, concessions, or long-term leasing Investors will be required to meet minimum capital investment thresholds and adhere to environmental, employment, and sustainability standards The ministry aims to increase tourist arrivals to 5 million, generate KSh 1.2 trillion in revenue and create 2.5 million jobs Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.
The Kenyan government has unveiled plans to privatise several public beaches and islands along the Coast in a move aimed at attracting private investment and boosting tourism revenue.
Tourism Cabinet Secretary Rebecca Miano during an address at the Senate. Photo: Rebecca Miano.
Source: Twitter This is according to the draft Kenya National Tourism Strategy (NTS) 2025–2030, which outlines a roadmap to reposition Kenya as a globally competitive, sustainable, and inclusive tourism destination.
“The NTS 2025–2030 is not only a plan, it is a national commitment to making Kenya a leading, inclusive, and future-ready tourism destination,” the Ministry of Tourism described the strategy. Search option is now available at TUKO! Feel free to search the content on topics/people you enjoy reading about in the top right corner 😉
Which beaches and islands are set for privatisation? According to the strategy, the ministry has identified and designated multiple specific beaches and islands for private investment under either private ownership, private concessions or long-term island leasing models.
“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 50 Investment criteria will be set including minimum capital investment, environmental safeguards, employment quotas, and sustainability commitments,” the ministry explained. Beach/Island
Potential Use
Chale Island (Kwale)
Luxury eco-resorts, private wellness retreat
Funzi Island (Kwale)
High-end barefoot luxury lodges, island escapes, marine ecotourism
Kiwayu Island (Lamu)
Exclusive-use eco-lodge, sport fishing, diving retreat
Manda Toto Island (Lamu)
Ideal for private marine experiences including boutique retreat, yachting base, snorkeling, and diving
Takaungu Beach (Kilifi)
Cultural retreats, boutique hotels, heritage experiences
Msambweni Beach (Kwale)
Private beach resorts, upscale wellness and spa resorts
Vipingo Beach (Kilifi)
With an existing private estate model (Vipingo Ridge) and access to an airstrip and gated security, the beach has potential for high-end beach clubs, golf and beach resorts
Kipungani & Matondoni Beaches (Lamu)
With traditional Swahili settings, calm shores, and scenic beauty away from crowded Shela and Lamu Town, the area has potential for boutique heritage resorts and exclusive retreats
Key enhancements proposed in the draft tourism strategy include partnering with private developers to establish a coastal golf resort in Diani, promoting international beach and marine sports events, and developing cultural and culinary trails featuring Swahili cuisine, dhow building, and historical tours to sites such as Gede Ruins and Fort Jesus.
The plan also includes establishing an international convention center in Mombasa and positioning coastal Kenya as a premier Meetings, Incentives, Conferences, and Exhibitions (MICE) hub in Africa.
What are the expected benefits? The Ministry’s 2025–2030 strategic outlook sets measurable targets.
It’s aiming to boost international tourist arrivals to 5 million and tourism revenue to KSh 1.2 trillion (about USD 9 billion).
The plan projects tourism’s direct contribution to GDP at 12%, with 2.5 million jobs created and an average visitor stay of 12–14 nights.
It also targets annual tourism investments exceeding KSh 200 billion, over 10 million domestic bed-nights, 125,000 classified beds, and 215,000 accredited beds.
The MICE (Meetings, Incentives, Conferences, and Exhibitions) sector is expected to contribute 30–35% of arrivals, while niche tourism products will account for 35–40% of offerings.
The ministry noted that the strategy was developed through consultations with government, private sector, and community stakeholders as a blueprint for unlocking Kenya’s tourism potential.
Privatisation of the Kenya Pipeline Company In other news, the Kenyan government plans to sell a stake in the Kenya Pipeline Company (KPC) to raise KSh 100 billion as part of its broader privatisation and economic reform agenda aimed at easing fiscal pressure.
According to a sessional paper titled ‘Work Plan for the Proposed Privatisation Process’ presented to Parliament, the Treasury will allow Kenyans, including KPC staff, to buy shares through an IPO on the Nairobi Securities Exchange (NSE).
KPC, established in 1973 and fully state-owned, operates a 1,342-kilometre petroleum pipeline network and earned KSh 6.87 billion in profit in the 2023/2024 financial year.
The company paid the Treasury KSh 10.5 billion in dividends over the past year.
Source: TUKO.co.ke
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