The Kenya Tourism Federation (KTF) has petitioned lawmakers urging Kenya Wildlife Services (KWS) to suspend a 5% gateway fee introduced as part of its new payment system, citing system inefficiency and additional costs for tour operators.
The move follows a separate dispute last year over proposed conservation increases, which were temporarily blocked by a High Court interdict.
Operational disruptions
The industry was given just 48 hours’ notice before KWS implemented the new payment system, which includes the gateway fee.
Tour operators had already finalised 2026 rates, leaving them unable to adjust pricing and forcing many to absorb the additional cost, said Fred Odek, Chairman of the KTF. Operators are paying different prices because the gateway fee is charged as a percentage so operators bringing in more business are being punished with higher fees, he added.
“This has forced operators into difficult positions either absorbing financial exposure, renegotiating with clients or risking cancellations. It is not a sustainable situation for businesses operating on thin margins and long booking cycles,” said Daniel Mbugua, Chairman of the Tour Operators Society of Kenya.
The system does not allow operators to hold bookings provisionally, he added. “Our clients require time to confirm itineraries and, without the ability to secure space provisionally, we are losing confidence and credibility.”
“The new KWS payment system is chaotic. It doesn’t ensure smooth entry into the parks as, most times, the system is unresponsive,” said Kennedy Kaunda, Group CEO of East Africa Tour Guides and Drivers Association.
Financial concerns
The KTF estimates that the gateway fee could cost the industry approximately KSh550 million (US$4.23 million) based on projected transaction volumes through the system.
“The gateway fee has no receipt,” said Odek. “You get a receipt for the conservation fees only. This means that the industry stands to lose that amount.”
Impact on demand
Mbugua said the industry is already seeing a shift in demand as agents and clients become increasingly hesitant to make bookings due to lack of certainty. This has redirected business towards competing destinations with more user-friendly and simpler booking processes.
“Kenya’s strength has always been its ease of packaging and reliability. This is now being undermined. If not addressed urgently, this will have a direct impact on arrivals and revenue,” said Mbugua.
In addition to calling for payment systems to be simplified and abolishing gateway fees, as indicated by Kaunda, associations are also calling for engagement with operators in order to refine the system as well as the ability to provisionally secure bookings and payment reconciliation, he added.
“We fully support digitisation and transparency but the system must work for the industry it serves. This is not a resistance to change; it is a call for practical implementation.”
