Africa -  Kenya - Mombasa

Kenya had an extraordinary election year in 2017. While the election itself in August was relatively peaceful, it was annulled after the supreme court found evidence of irregularities. The second vote, two months later, was boycotted by the opposition in fear that not enough was done to check the irregularities. At the end of November 2017, Uhuru Kenyatta with his pro-business and pro-international investment approach, was sworn in for a second five-year term as president of Kenya as he pledged to work for national unity.

On the tourism front, unlike previous election years where tourism visitation and earnings had declined by 10%-15% in the election year, the airport arrivals in Kenya increased by 2.1% while the Kenyan Ministry of Tourism announced that tourism earnings hit a decade high. What is even more remarkable is that international visitation increased by 6.8% year on year in 2017 reflecting well on the performance of the popular tourist destinations in Kenya

Mombasa is one of East Africa’s largest port cities and the second largest hotel market in Kenya. With beautiful white sandy beaches, warm ocean waters and favourable weather conditions, Mombasa is a great beach destination. The city which dates back to 900 AD has a rich history to showcase along with eclectic cuisines. While the destination was popular among European travellers from 1970s to 1990s, a series of unrest and elections led to an adverse impact on its tourism industry. However, the industry has repositioned itself to cater to the rising spending power of the East African countries and capturing the meeting and conference market. Further, the completion of the modern Standard Gauge Railway (SGR) that replaced the century old railways built by the British has boosted travel to coastal towns reducing travel time to about 5 hours from Nairobi. Quality hotels in the market have witnessed growth in occupancy since the end of 2017 and we foresee demand increasing as the government strives to improve infrastructure, connectivity and visa on arrival facilities

The lack of new supply will certainly underpin improved performance and increase in hotel Market Value.

Exchange Rate:

Exchange Rate 2016 Exchange Rate 2017 Change 2016/2017 Exchange Rate 2018 Change 2017/2018
US$ 1 0 0
Kenya - Mombasa 0.00969 0.00952 -1.8% 0.00981 3.0%

Change In Value For Market:

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Kenya - Mombasa RevPAR Change

Kenya - Mombasa RevPAR

Year RevPAR
2015 32.33
2016 32.89
2017 32.93
2018 (f) 42.68
2019 (f) 46.91
2020 (f) 49.52

For more information, please contact:

Tim Smith, MRICS
[email protected]
  • +27 797 342296 (w)
Rishabh Thapar
[email protected]
  • +27 0 792790584 (m)
Laura Dutrieux
[email protected]