Three Resort Managers Arraigned for Failing to Remit Tourism Levy
Three resort managers have been charged in a Naivasha court for allegedly failing to remit the mandatory 2 percent tourism levy as required by the Tourism Act. The managers, drawn from different hospitality establishments in Nakuru County, are accused of violating key provisions of the law governing the tourism sector’s financial obligations. The charges stem from an audit by the Tourism Fund, a state corporation responsible for collecting levies from licensed tourism establishments across Kenya.
According to court documents, Diana Mumbi, the manager at Elmar Resort and Spa, is accused of failing to remit levy arrears amounting to Ksh.923,266 between July 2023 and June 2024. She pleaded not guilty before the Naivasha Law Courts and was released on a cash bail of Ksh.20,000. Two other managers — John Ngure Mahta, a director at Crayfish Camp, and James Munene Moses, a director at Makuti Pub — faced similar charges under Section 105 of the Tourism Act, Cap 38. Both also denied the charges and were granted bail under similar terms.
The Tourism Fund Act mandates all registered hotels, lodges, restaurants, and entertainment venues to remit a 2 percent levy from their revenue collections. The Fund plays a critical role in financing tourism development, training, and marketing initiatives in Kenya. Failure to remit the levy not only breaches statutory obligations but also hampers government efforts to sustain and promote the tourism sector — one of the country’s largest sources of revenue and employment.
The court is expected to set hearing dates as investigations continue. Legal experts note that the case underscores the government’s renewed efforts to tighten compliance within Kenya’s hospitality industry. Tourism stakeholders have urged operators to honor their financial responsibilities to maintain industry integrity and ensure sustainable growth. The outcome of the case could serve as a precedent, signaling stricter enforcement of financial regulations within the country’s tourism sector.