Who has to pay
- Hotels, lodges, camps and guest houses
- Restaurants, bars and cafes
- Shared kitchens, dark kitchens and businesses selling food through delivery apps, which the Tourism Fund has its own guidance for
- Serviced apartments: furnished, self-contained short and long stays, which is where many Airbnb-style hosts fall
- Other tourism activities regulated under the Tourism Act
A new tourism business should register with the Tourism Fund when it starts trading. The registration page covers serviced apartments.
How to work out the levy
The levy is 2% of sales before tax and charges. If your sales figure already includes VAT, service charge and the levy, the Tourism Fund gives these formulas:
| What is in the total | Levy |
|---|---|
| Rooms with 16% VAT, 5% service charge and the levy | Total x 2 / 123 |
| Rooms or drinks with 16% VAT and the levy | Total x 2 / 118 |
| Food with 5% service charge and the levy | Total x 2 / 107 |
| Anything with only the levy added | Total x 2 / 102 |
Example: a restaurant takes KES 107,000 in food sales including 5% service charge and the levy. The levy is 107,000 x 2 / 107 = KES 2,000.
How to pay on eLevy
- Log in to the eLevy platform and generate an eSlip for the period.
- Click Pay above the eSlip and choose M-PESA.
- Choose option 1 and enter your M-PESA number.
- Approve the M-PESA prompt with your PIN, then wait for the confirmation SMS.
Arrears are paid the same way, per the Tourism Fund's payment guide. Make sure the wallet has enough for the full eSlip before you start. For large amounts, check the M-PESA transaction limits.
Offences and penalties
| Offence | Maximum penalty |
|---|---|
| Failing to remit the levy (s.105(5)) | KES 100,000, up to 12 months in jail, or both |
| Failing to comply with the Act (s.112(1)(a)) | KES 100,000, up to 18 months, or both |
| Ignoring a demand from an authorised officer (s.112(1)(c)) | KES 100,000, up to 18 months, or both |
Source: Tourism Fund, offences and penalties.
What it means on your bill
On a hotel or restaurant bill, the levy may be shown as its own line or built into the prices. It is separate from VAT and from any service charge. If you run a restaurant, see M-PESA for restaurants for taking payments.
Sources
- Tourism Fund: 2% Tourism Levy, read 28 October 2026
- Tourism Fund: how to pay the 2% Tourism Levy
- Tourism Fund: how to calculate the levy
- Tourism Fund: offences and penalties
- Tourism Act 2011, section 105; Tourism Levy Order 2015 (Legal Notice 198 of 2015)