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Kenya to scrap VAT on Park Fees
President Uhuru Kenyatta has announced a raft of new measures to speed up tourism recovery, key among them the removal of value-added tax (VAT) on park fees and a waiver on visa fees for children under the age of 16 starting February.
The President said that he has also directed Kenya Wildlife Service (KWS) to reduce park fees from $90 (Sh9,180) to $60 (Sh6,120).
“We also intend to remove the VAT currently being charged on park fees and in this regard I have directed the Cabinet secretary in charge of National Treasury to initiate an amendment to the VAT Act and incorporate it in the Finance Bill for the financial year 2016/2017,” he said.
The Head of State said he had directed KWS chairman Richard Leakey to ensure park fees are lowered to lure tourists back to Kenya. Uhuru who spoke in Mombasa during the official opening of the EnglishPoint Marina, said the removal of visa fees for children will encourage family visits by tourists from Europe and other destinations.
EnglishPoint Marina is a unique, real estate development started by two Kenyan brothers, Alnoor Kanji and Amyn Kanji. It sits across the stunning Mombasa Old town skyline in a natural marine basin and has a world-class boutique hotel , modern apartments that are both for sale and rent and a fully-serviced floating marina (dock for yachts and small boats).
Uhuru also extended the waiver on landing fees for chartered flights at the Mombasa and Malindi international airports to June 30, 2018 to help increase their frequencies and attract new ones so that the industry can regain its full strength.
The President said this would provide the much-needed impetus for the tourism sector to breathe again. “The charter incentives will encourage those already flying into Mombasa to increase frequency of their flights and to attract new ones,” he said.
The President said the government is about to an conclude agreement to facilitate upgrade of the Malindi airport to international standard. Another measure is plans to facilitate hotels to get cheap loans to modernise their facilities to international standard.
“I have instructed the National Treasury to work with our private partners such as the World Bank, International Finance Corporation and others to see how we can negotiate for them a package to re-develop and modernise hotels,” said Uhuru.
He said there has been improvement in security, which had dented the image of Kenya as a safe tourist destination but asked security agencies and Kenyans to remain vigilant so as to safeguard gains made.
The government is also intensifying efforts to have the Dongo Kundu by-pass work begin so as to allow tourists to get to South Coast without passing through the Likoni ferry channel.
Credit: Mediamaxnetwork.co.uk
