Setting Up a Tour Operator or Travel Agency in Kenya as a Foreigner

Are you an investor thinking of setting up a tour operator or travel agency in Kenya as a foreigner? The tourism industry in Kenya has evolved significantly over the years, creating exciting opportunities for both local and foreign investors, especially those thinking of starting a tour operator or travel agency business in Kenya as a foreigner. With Kenya’s rich wildlife, cultural heritage, and growing domestic tourism, venturing into this sector can be highly rewarding.

If you are a foreigner looking to invest in Kenya’s tourism sector, understanding the licensing and compliance framework is key. In this article, we’ll explore what it takes to set up as a Tour Operator or Travel Agency, the differences between the two, and the specific requirements for foreign-owned businesses.

What Is a Tour Operator?

A tour operator organises and manages complete travel packages that include transport, accommodation, excursions, meals, and other experiences. They often negotiate directly with hotels, airlines, and service providers to create affordable, seamless travel experiences.

Example: A company offering a 5-day Maasai Mara safari, including transport, park fees, lodging, and guides, operates as a tour operator.

What Is a Travel Agency?

A travel agency acts as an intermediary between travellers and travel service providers. They assist clients with flight bookings, hotel reservations, car rentals, and package tours — often working with established tour operators.

Example: A firm that books flights and safari packages from third-party operators functions as a travel agency.

Requirements for Foreigners Starting a Tour Operator or Travel Agency in Kenya

Whether establishing a tour operator or travel agency, foreign investors must comply with certain legal and sector-specific requirements.

1. Company Registration

Register the company with the Business Registration Service (BRS) via eCitizen.
Foreign-owned companies must have at least one local director for compliance purposes.
Obtain a Certificate of Incorporation, CR12, and Company PIN.

Licensing Categories

Both Tour Operators and Travel Agencies fall under the Class C category of the Tourism Regulatory Authority (TRA) licensing framework:

C01 – Tour or Safari Operators
C04 – Travel Agency

Requirements for Tour or Safari Operators (C01)

To obtain a Tour Operator Licence from the Tourism Regulatory Authority, you must provide:

Certificate of Registration/Incorporation
CR12 and/or ID copies of directors
KRA PIN Certificate of the tourism enterprise
Professional certificates of the person managing the enterprise
Public liability insurance
Proof of business premises (title deed or lease)
Vehicle logbooks or contracts of hire from licensed companies
Valid work permits for foreign directors or staff

Requirements for Travel Agencies (C04)

To obtain a Travel Agency Licence, the following are required:

Certificate of Registration/Incorporation
CR12 for companies and/or ID copies of directors/owners
KRA PIN Certificate of the tourism enterprise
Professional certificates of the person managing the enterprise
Title deed or lease agreement for the office accommodation
Valid entry/work permits for foreign owners
Evidence of a capital base of at least USD 100,000 (for foreign-owned enterprises)
Vehicle logbook copies and/or hire contracts from licensed companies
Insurance copies

Additional Requirements for Foreign Investors

Local Director: A foreign-owned company must have at least one local director for compliance purposes (they can hold zero shares).
Business Permit: Obtain a Single Business Permit from the relevant County Government (e.g., Nairobi).
Tax Compliance: Register for a KRA PIN and ensure annual tax filings.
Work Permits: Directors and key foreign staff must have valid work permits.

Conclusion

Kenya’s tourism industry offers immense potential for growth and investment. Whether you’re setting up as a tour operator creating safari packages or as a travel agency connecting clients to destinations, understanding the regulatory framework is key to a smooth start.

Foreign investors are encouraged to work with local consultants to streamline registration, licensing, and compliance processes for faster turnaround. For assistance, reach out to us at;

📩 clientservice@afrilinkconsultants.com

📞 +254707280366

🌐 https://afrilinkconsultants.com/

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