Kenya's gorgeous hospitality sector is riding a major wave of growth, attracting the attention of global investors, policymakers and tourism experts. As the country positions it as the finest destination for luxury tourism, the confluence of factors from a steady influx of international visitors to a stable economic environment forms an attractive investment environment.
These dynamics will be central to the discussion at the 12th East Africa Real Estate Investment (EAPI) Summit scheduled for May 7-8, 2025 at Pullman Hotel in Upper Hill, Nairobi. This top real estate conference brings together over 450 stakeholders, including investors, developers, hotel operators and policymakers from around the world to explore the challenges and uncover investment opportunities in East Africa's hospitality and real estate markets.
Sectors ready for change
Industry leaders argue that Kenya's luxury hospitality industry has reached a pivotal point. International arrivals have increased by 35%, and demand for premium accommodations is accelerating in the rapidly growing middle class equipped with high disposable incomes.
Banihadad, managing director of Aleph Hospitality, highlighted the sector's potential.
“Kenya offers a great opportunity for hospitality investment with a unique combination of untapped possibilities, economic stability, strategic location and government incentives.”
Alef Hospitality, the largest independent hotel management company in the Middle East and Africa, considers Kenya an ideal destination for advanced investments in luxury tourism. Haddad pointed to incentives such as government support policies, a strong economic foundation and rapidly growing travel demand as catalysts for growth.
Nairobi and Masai Mara lead the accusations
Two regions in Kenya's hospitality landscape are the capital Nairobi, an economic and logistics hub, and Masai Mara, a globally recognized safari destination. According to Fiona Craw, vice president of JLL Africa's Hotels & Hospitality Group, both locations have seen “robust demand across the entire corporate, leisure, mouse and government travel segments.”
Positioning as a leader in Kenya conferences, incentives, conferences and exhibitions (MICE) has been further strengthened by ongoing infrastructure investments, enhancing the country's reputation as an accessibility and business travel hotspot.
Aviation infrastructure: the key to sustainable growth
Mark Dunford, CEO of Knight Frank Kenya, emphasizes the importance of air connections.
“Jomo Kenyatta International Airport must remain a hub for sub-Saharan regions,” he said.
Improved aviation infrastructure is essential to Kenya's ability to respond to the rise in international travel and establish itself as a luxury destination in Africa.
Industry hurdles: oversupply, visa issues, and management stocks
Despite the optimistic outlook, experts have admitted some headwinds. Oversupply of Hotel Rooms in Nairobi – Over 2,000 new rooms have been added in just 18 months, but challenges occupancy and profitability.
“There is a growing pressure on market performance throughout 2025,” Craw warns. However, Daniel Trappler of Radisson Hotel Group believes that not all areas are saturated. “Nairobi's Selection Node offers untapped opportunities with the right brands and locations.”
Another important barrier is the complex visa system. Dunford points out that simplifying the entry procedure could significantly increase the number of visitors. Today, most African countries, including Kenya, face bureaucratic and expensive visa processes that hinder seamless travel.
Additionally, challenges persist, such as security concerns, supply chain disruptions, HR constraints and high operating costs due to inflation. Haddad supports deeper public-private partnerships, streamlined land acquisition processes, and talent development as a long-term solution.
A sustainable and strategic growth path
Despite the obstacles, Kenya is suited to evolve into Africa's gorgeous tourism powerhouse. Experts propose strategies that look ahead to the next future.
Public-Private Partnership: An innovative funding structure can ease development costs and attract capital for large projects.
Eco-Friendly Luxury: Resorts embrace solar energy, waste reduction and conservation programs to meet global sustainability expectations.
Custom Travel Experiences: Exclusive products such as private safari, cultural immersion and secluded coastal villas are central to capturing the interests of wealthy tourists.
Airport Modernization: Continuous investment in Jomo Kenyatta International Airport and local aviation hubs is necessary to meet growing demand.
Long-term vision for East Africa
The 2025 EAPI Summit is not just in Kenya. Participants will also explore investment opportunities across Tanzania (particularly Zanzibar), Uganda, Rwanda and Ethiopia. The market shows signs of economic stabilization and increased tourism potential.
Jugal Khushalani, senior director of development at Marriott International, highlighted Kenya's strength across multiple segments.
“As we have a growing appetite for high-end experiences, we are committed to expanding our portfolio of urban hotels and safari lodges across Kenya.”
Optimism tempered by strategy
Kenya's gorgeous hospitality sector is experiencing a pivotal moment. This is a moment when increasing demand combined with investor trust and expansion. With appropriate strategies and a collaborative approach, Kenya can solidify its position as a major African destination for luxury travel.
As global attention shifts to Nairobi at the 12th EAPI Summit, stakeholders are expected to use this momentum to create a robust dialogue about solving structural challenges and building a more sustainable and inclusive hospitality future for the region.
For more information on registering and participating in the event, please visit https://eapisummit.com.
