Kenya to Privatise Nine Coastal Sites in Bid to Boost Luxury Tourism

The Ministry of Tourism has announced plans to privatise nine coastal sites across Kwale, Lamu, and Kilifi counties as part of a new strategy to attract high-end investment and reposition the country’s beach tourism sector.

Outlined in the draft National Tourism Strategy 2025–2030, the proposal targets four islands—Chale, Funzi, Kiwayu, and Manda—and five beaches, Takaungu, Msambweni, Vipingo, Kipungani, and Matondoni, for private investment through a mix of ownership, concession, and long-term lease models. The ministry says the approach will help mobilise capital for developments such as boutique hotels, luxury beach clubs, private marine access points, helipads, and airstrips.

Planned projects include a golf resort in Vipingo, wellness and spa facilities in Msambweni, and an eco-lodge on Kiwayu Island offering diving and sport fishing. Funzi Island is designated for barefoot luxury lodges and marine ecotourism ventures.

The ministry argues that privatisation will boost economic growth while enforcing sustainability standards, employment quotas, and minimum investment levels. Environmental protections are expected to form part of each agreement, though the framework for monitoring and enforcement has not yet been detailed.

The strategy also introduces a new beach classification system similar to the Kenya Wildlife Service’s park categories. Beaches will be grouped into four types- premium, family and leisure, ecotourism and cultural, and adventure and sports-with each category receiving tailored branding and management plans to align with specific visitor interests.

Tourism Principal Secretary John Ololtuaa has invited the public to review the draft and submit feedback during nationwide consultations from 27 to 29 October. The document is available on the ministry’s website, and citizens are being encouraged to assess its potential effects on local communities, the environment, and tourism sustainability.