Kenya’s hospitality sector recorded 4.1% growth in the first quarter of 2025, a sharp slowdown from the 38.1% surge in the same period last year, in what industry analysts say is a shift to normal growth after 2024’s post-pandemic rebound.

• •International tourist arrivals, however, rose 3.5% in the first four months of the year to 751,692 visitors.
• •Kenya was named Africa’s fourth-best tourism destination and the top recipient of tourism FDI in 2024 by UN Tourism, cementing its global reputation.
• •According to Kenya Market Update – H1 2025 by Knight Frank, the country faces rising competition from Rwanda and South Africa, which are positioning themselves as premium destinations through heavy investment in infrastructure and luxury hospitality.

“Despite headwinds, the fundamentals remain strong. With a robust project pipeline, growing domestic tourism, and sustained investor confidence, Kenya is expected to retain its place as a leading hospitality and tourism hub in Africa,” Charles Macharia Senior Reseacher at Knight Frank, said.

Knight Frank notes that big brands are betting on Kenya’s long-term appeal. Marriott International is rolling out two eco-luxury safari camps—Ritz-Carlton Masai Mara and JW Marriott Mount Kenya Rhino Reserve—while Radisson Blu is expanding its Arboretum property with new restaurants, meeting spaces, and 80 extra rooms in a Sh1.43 billion project.

Local players are also on the move. Serena Hotels is upgrading properties to meet sustainability standards, while Bomas of Kenya is embarking on a mega modernization drive that includes two five-star hotels, a four-star hotel, and a 70,000 sqm shopping mall.

In 2024, Rwanda’s Travel & Tourism sector contributed Fr1.9TN to the economy, representing 9.8% of the total economy and 17.7% above the previous peak in 2019. The World Travel and Tourism Council (WTTC) forecasts that by 2035, Rwanda’s tourism sector will contribute Fr3.1TN to the economy, a 10% share of GDP, and support more than 545,000 jobs across the country.

The second half of 2025 will be crucial in assessing the impact of new openings, shifting global travel trends, and economic conditions on the sector’s outlook.

Kenya’s hospitality sector recorded 4.1% growth in the first quarter of 2025, a sharp slowdown from the 38.1% surge in the same period last year, in what industry analysts say is a shift to normal growth after 2024’s post-pandemic rebound.

• •International tourist arrivals, however, rose 3.5% in the first four months of the year to 751,692 visitors.
• •Kenya was named Africa’s fourth-best tourism destination and the top recipient of tourism FDI in 2024 by UN Tourism, cementing its global reputation.
• •According to Kenya Market Update – H1 2025 by Knight Frank, the country faces rising competition from Rwanda and South Africa, which are positioning themselves as premium destinations through heavy investment in infrastructure and luxury hospitality.

“Despite headwinds, the fundamentals remain strong. With a robust project pipeline, growing domestic tourism, and sustained investor confidence, Kenya is expected to retain its place as a leading hospitality and tourism hub in Africa,” Charles Macharia Senior Reseacher at Knight Frank, said.

Knight Frank notes that big brands are betting on Kenya’s long-term appeal. Marriott International is rolling out two eco-luxury safari camps—Ritz-Carlton Masai Mara and JW Marriott Mount Kenya Rhino Reserve—while Radisson Blu is expanding its Arboretum property with new restaurants, meeting spaces, and 80 extra rooms in a Sh1.43 billion project.

Local players are also on the move. Serena Hotels is upgrading properties to meet sustainability standards, while Bomas of Kenya is embarking on a mega modernization drive that includes two five-star hotels, a four-star hotel, and a 70,000 sqm shopping mall.

In 2024, Rwanda’s Travel & Tourism sector contributed Fr1.9TN to the economy, representing 9.8% of the total economy and 17.7% above the previous peak in 2019. The World Travel and Tourism Council (WTTC) forecasts that by 2035, Rwanda’s tourism sector will contribute Fr3.1TN to the economy, a 10% share of GDP, and support more than 545,000 jobs across the country.

The second half of 2025 will be crucial in assessing the impact of new openings, shifting global travel trends, and economic conditions on the sector’s outlook.