Whether you are opening a boutique lodge, launching a safari company or starting a tour guiding business, operating without the correct licence is an offence in Kenya. Tourism licensing in Kenya is administered by the Tourism Regulatory Authority (TRA), and the rules changed materially in 2025 and again in 2026. This guide explains who must be licensed, how to apply, what a licence costs you in compliance terms, and what happens if you get it wrong.
What the Tourism Regulatory Authority Does
The TRA is established by section 4 of the Tourism Act, 2011 (Cap. 381). Its functions under section 7(1) include regulating tourism activities and services, registering, licensing and grading tourism and tourist-related activities and services (including cottages and private residences engaged in guest house services), and developing criteria for standardisation and classification of tourism facilities and services.
The Legal Basis for Licensing
Section 98(1) of the Tourism Act provides that no person may undertake any of the tourism activities and services specified in the Ninth Schedule unless that person holds a licence issued by the Authority. An application for a licence, or for a variation of one, is made to the Board of the Authority in the prescribed form and must be accompanied by the prescribed fees (section 98(2) and (3)).
Regulation 17 of the Tourism (Tourism Enterprises) Regulations, 2026 repeats the prohibition and adds a practical consequence. A county or other licensing authority may not issue a trading, commercial or business permit to a tourism enterprise unless the applicant produces a valid TRA licence. Operating without one is an offence punishable by a fine of up to KES 1,000,000, imprisonment for up to six months, or both.
Which Tourism Businesses Need a Licence
The Ninth Schedule to the Tourism Act groups regulated activities into eight classes, A to H:
- Class A: accommodation, including hotels, members clubs, motels, lodges, ecolodges, tented camps, villas, homestays, guest houses and time shares.
- Class B: restaurants and other food and beverage services.
- Class C: tour or safari operators, tourist service vehicle hire, local air charter, travel agencies, water sports, balloon operators and boat excursions.
- Class D: game fishing outfitters, camping equipment hire, game ranches, amusement parks and non-citizen tour leaders or guides.
- Class E: local traditional boat operators, professional safari photographers, curio vendors, private zoos, citizen tour leaders or guides, general vendors and beach operators.
- Class F: entertainment facilities.
- Class G: conference and event services.
- Class H: tourism and hospitality training institutions.
If your business falls in any of these classes you need a licence, even if you also hold a county business permit.
The 2026 Tourism Enterprises Regulations
The licensing process is now governed by the Tourism (Tourism Enterprises) Regulations, 2026 (Legal Notice 127 of 2026), which took effect on 10 July 2026. They revoked the Tourism Regulatory Authority (Tourism Enterprises) Regulations, 2025, which had been in force since 16 December 2025.
How to Apply for a TRA Licence
Under regulation 18, the proprietor of a tourism enterprise, or an agent, applies to the Authority on Form TE 2. The application must be accompanied by:
- the one-off application fee and the annual licence fee set out in the Fourth Schedule;
- the constituting documents of the enterprise;
- the physical and postal address of the enterprise; and
- proof of membership of a registered tourism sector association.
The Authority verifies the validity of that membership before granting or renewing a licence. Under regulation 21(1), it must decide the application within thirty days. If it approves, it issues the licence; if it rejects, it must notify you in writing, with reasons, within fourteen days of making its determination.
Where an applicant has not yet met every requirement, regulation 22 allows a provisional licence. The applicant then has up to three months to comply, extendable once by up to a further three months for justifiable reasons. If the applicant does not comply, the provisional licence lapses.
Licence Conditions, Renewal and Penalties
A licence issued under the Regulations expires on 31 December of the year of issue (regulation 21(3)), so renewal is an annual task. During the year you must observe several continuing duties:
- display the licence prominently on the premises;
- if you advertise online or on booking platforms, show the licence identification features, such as the serial number or QR code, at all times;
- use the licence only at the physical address for which it was issued, and notify the Authority in writing within seven days of a change of address; and
- notify the Authority in writing within seven days of any change in your business operations, including closure (regulation 23).
Breach of regulation 21 is an offence carrying a fine of up to KES 1,000,000, up to six months in prison, or both. Separately, section 112 of the Tourism Act makes it an offence to breach the Act or the terms of a licence, to obstruct an authorised officer, or to furnish false information or a forged licence. The penalty is a fine of up to KES 100,000, imprisonment for up to eighteen months, or both.
Suspension, Cancellation and Transfer
The Authority may cancel a licence under regulation 25 if the holder fails to meet a lawful condition, fails to comply with the Act or Regulations, obtains the licence fraudulently, or operates a tourism activity different from the one licensed. Before suspending, revoking or cancelling, it must notify you in writing with reasons and give thirty days’ notice unless you fulfil the conditions specified. Once a licence is revoked, suspended or cancelled you must cease operating and surrender it within fourteen days.
A licence may be transferred only in respect of the same tourism activity or service, and the transferor and transferee must jointly notify the Authority in writing within thirty days (section 99). If they do not, the licence is deemed not to have been transferred. Under regulation 24, the Authority conducts a quality audit of the enterprise before effecting a transfer.
Accreditation and Star Classification
Licensing is distinct from accreditation and classification. Under regulation 7, the Authority accredits licensed enterprises that meet quality criteria every two years and awards a mark of quality. Under regulation 8, it classifies Class A and Class B enterprises nationally every five years, and Class A enterprises are graded from one to five stars. Failing to subject an enterprise to classification, advertising a star rating the Authority has not published, or failing to display the classification plaque or mark of quality is an offence under regulation 16, with the same penalty of up to KES 1,000,000, six months in prison, or both.
How We Can Help
Clay & Associates Advocates advises hotels, lodges, safari and tour operators, travel agencies and event businesses on TRA licensing, renewals, classification disputes and responses to enforcement action. Speak to our regulatory compliance team or contact us to review your licensing position.
Sources: Tourism Act, 2011 (Cap. 381); Tourism (Tourism Enterprises) Regulations, 2026 (LN 127 of 2026); Tourism Regulatory Authority (Tourism Enterprises) Regulations, 2025 (revoked).
Frequently asked questions
Do I need a TRA licence if I already have a county business permit?
Yes. A county licensing authority may not issue a business permit to a tourism enterprise unless you produce a valid TRA licence (regulation 17(3)).
When does a tourism licence expire?
On 31 December of each year (regulation 21(3)), so it must be renewed annually.
What is the penalty for operating without a licence?
Under regulation 17(4), a fine of up to KES 1,000,000, up to six months’ imprisonment, or both. Section 112 of the Tourism Act separately provides a fine of up to KES 100,000, up to eighteen months’ imprisonment, or both.
Can I trade while my application is pending?
No. The Authority may issue a provisional licence for up to three months where some requirements are outstanding (regulation 22), but without a licence of some kind you may not operate.
Need advice on your own matter?
Tell us what you are dealing with. You will know what it involves and what it costs before you commit.
This article is general information on Kenyan law as at its publication date, not legal advice. Reading it does not create an advocate and client relationship.
