The government has earmarked a portion of the Sh5 billion annual tourism levy to begin repaying private investors in the hotels and commercial facilities being developed around the Bomas International Convention Complex (BICC). The decision could redefine how major infrastructural projects are financed in Kenya, merging innovative revenue streams with strategic public-private partnerships (PPPs) to propel the country’s Meetings, Incentives, Conferences, and Exhibitions (MICE) tourism ambitions.
The Bomas International Convention Complex is envisioned as a transformative initiative to boost Kenya’s stature as a continental destination for large-scale international events, filling a long-identified gap in meeting facilities that has seen competitors such as Rwanda outpace Nairobi in hosting major conferences.
From Cultural Hub to Global Convention Destination
The site that once hosted traditional dance performances and cultural showcases is undergoing a radical transformation. The Bomas International Convention Complex project, situated on a sprawling 79-acre parcel off Lang’ata Road in Nairobi, comprises multiple phases. The first phase, an 11,000-seat ultra-modern convention centre, is already under construction at an estimated cost of Sh31.5 billion, with contractors working around the clock to ensure completion by April 2026. President William Ruto has said the facility is already booked for the France-Africa Summit set for May 2026 even before its official opening.
Once completed, the centre will feature auditoria, banquet halls, meeting rooms, VIP spaces, and expansive support facilities, poised to accommodate more than 10,000 delegates, a scale that places it among Africa’s largest.
However, the full vision encompasses more than just a conference hall. Future phases will see the development of two five-star and four-star hotels, a shopping mall, and other commercial facilities as part of the Bomas International Convention Complex’s strategy to create a self-sustaining tourism and business ecosystem. These hospitality and commercial developments are being delivered through PPP arrangements where private investors raise capital, develop, and operate the assets for a period before the state assumes ownership.
The Tourism Levy as a Financing Lever In Kenya
At the centre of the financing strategy is Kenya’s tourism levy, a 2.0 percent charge on gross receipts from hotel stays, meals, drinks, and other tourism-related services. The fund collected more than Sh5.1 billion in the year to June 2025, up from Sh4.9 billion the year before and Sh3.9 billion in 2023, reflecting steady growth in tourism activity and levy compliance.
Rather than leaving the levy to be absorbed into general tourism funding allocations, the Tourism Fund has ring-fenced at least 4 percent of collections to service repayments to investors in the hospitality and commercial components of the Bomas International Convention Complex. Tourism Fund Board of Trustees Chair Samson Some explains that this commitment enhances the bankability of the project. “It’s a market transaction,” Mr. Some told journalists. “Private investors put in money, and the sector commits a percentage of levy collections annually to repay that investment.”
Such an approach positions the tourism levy as a quasi-debt service mechanism tailored to project financing. Instead of relying solely on sovereign borrowing or central government budget allocations, both of which are subject to fiscal pressures and debt ceilings, Kenya is experimenting with a revenue-backed model that strengthens investor confidence. Mr. Some argues that spreading repayment costs over time while tapping revenue that grows with tourism activity allows faster delivery of infrastructure than traditional public funding.
Implications Of Bomas International Convention Complex Investment Structures
Proponents of the strategy say the decision to leverage the tourism levy for investor repayment has multiple strategic benefits. First, it bridges the financing gap for monumental projects at a time when public debt remains elevated and government borrowing is constrained. Second, it aligns investor returns with the performance of the tourism sector, a vibrant, growth-oriented segment of the economy.
Moreover, expanding the levy’s reach may further bolster the revenue pool. The Tourism Fund recently announced plans to extend the 2 percent tourism levy to short-term rental platforms such as Airbnb and Booking.com, which have historically operated outside the formal levy regime but account for a growing share of accommodation bookings. This move aims to modernise revenue collection and close enforcement gaps, potentially increasing levy inflows in coming years.
Should this expansion succeed, it could elevate annual levy collections beyond current levels, providing a thicker cushion for servicing investor commitments tied to Bomas International Convention Complex and other tourism-related infrastructure.
Economists also highlight the broader ripple effects of such infrastructure. Convention centres of Bomas’ scale typically catalyse demand for hotels, transport services, restaurants, entertainment venues, and local commerce. With Nairobi’s central business district experiencing evolving commercial dynamics, a steady pipeline of international conferences could rejuvenate urban economic activity, create jobs, and generate foreign exchange.
Navigating Risks and Criticisms
Despite the promise, the strategy faces scrutiny. Some critics caution against tying a fixed percentage of tourism levy revenues, which can fluctuate with demand, global travel trends, or pandemics, to long-term investor repayments. The risk, they argue, lies in potential shortfalls that could pressure the Tourism Fund’s obligations to other programmes or distort fiscal planning.
Moreover, Kenya must ensure that the revenue-backed model does not inadvertently crowd out other essential tourism investments, including marketing, conservation, and community-based tourism initiatives that also depend on levy funding.
Public discourse has also seen isolated debates about the broader vision for Bomas of Kenya. Although some political figures claimed the site had been sold to a foreign investor, government officials categorically refuted these allegations, clarifying that the facility remains under government custody and will be developed into a global conferencing and cultural centre. The investment and modernisation were framed as overdue and necessary to reposition Kenya in the MICE tourism sector.
A Paradigm Shift for Infrastructure Financing?
Kenya’s approach to financing parts of the Bomas International Convention Complex through committed tourism levy revenues reflects an innovative shift in how large-scale infrastructure can be funded amidst fiscal constraints. By blending government policy with private capital participation, the model aims to unlock catalytic investments while aligning returns with sector performance.
For the Bomas International Convention Complex, this could mean delivering world-class conferencing and hospitality assets without overburdening the national budget or compromising on quality and timeliness. If successful, the blueprint could be replicated for other priority sectors — from transport and cultural infrastructure to educational campuses and smart economic zones.
Yet, the strategy’s long-term success hinges on robust growth in Kenya’s tourism sector, disciplined levy administration, and transparent governance of funds earmarked for repayment. With international travel rebounding and Kenya reasserting itself as a premier destination for leisure and business travel, the coming years will be a litmus test for whether revenue-anchored financing can unlock transformative infrastructure while nurturing sustainable economic growth.
ALSO READ: New Hyatt Regency Hotel Opened In Nairobi’s Westlands
