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Kenya's tourism operators warn a new KWS payment platform, rolled out despite a court order, could cost the sector over Sh370 million annually through hidden fees, threatening the nation's global competitiveness.
Kenya's tourism sector is locked in a fierce dispute with the Kenya Wildlife Service (KWS) over a newly implemented digital payment system for park entry, which operators claim was rolled out without consultation and imposes punitive new charges. The Kenya Tourism Federation (KTF), an umbrella body for private tourism associations, held a press briefing in Nairobi on Monday, 3 November 2025, stating the new platform could cost the industry more than Sh370 million each year in unbudgeted expenses. This, they argue, jeopardizes Kenya's standing as a premier safari destination by inflating costs and creating significant operational hurdles for tour companies.
The controversy centers on the transition to a new portal dubbed 'KWSPay', which KWS and eCitizen launched on Saturday, 1 November 2025. While KWS Director General Dr. Erastus Kanga stated the system would create a "more seamless, enhanced and flexible process," industry players have condemned it. Key grievances include the removal of the bank transfer option, which is critical for large group bookings, and the introduction of a 5% "gateway fee" that operators say is only revealed at the final payment stage. Some reports initially cited an 8.5% processing fee for card payments. KTF Chairperson Fred Odek described the gateway fee as lacking legal backing and warned it would substantially increase operating costs.
Furthermore, the KTF has raised concerns about KWS applying an exchange rate of Sh135 per US dollar, significantly higher than the Central Bank of Kenya's official rate of around Sh129. This discrepancy artificially inflates park entry costs for international visitors, making Kenya less competitive compared to regional alternatives like Tanzania and Botswana.
The rollout of the KWSPay system is further complicated by an existing court order. On 2 October 2025, the Milimani High Court issued a temporary injunction, sought by the KTF, halting the implementation of a new, higher park fee structure that was set to begin on 1 October 2025. The court case is scheduled for a hearing on Tuesday, 25 November 2025. Tourism stakeholders argue that by launching a new payment platform with different fee mechanics while this injunction is in place, KWS is sidestepping the court's authority. Mr. Odek stated that the federation is not against fee increases but took issue with the extremely short notice provided before the planned implementation.
The financial strain on tour operators is immediate. Many companies have contracts with international clients locked in for dates extending well into 2025, based on the previous cost structure. The unexpected gateway fees and inflated exchange rates mean these operators now face significant, unbudgeted losses that threaten their viability and partnerships. The KTF calculated the potential Sh370 million annual loss based on KWS's projected park revenue of Sh7.41 billion for 2024.
In a joint statement with eCitizen on 1 November 2025, KWS defended the new system, stating it offers more payment flexibility—including M-Pesa, bank cards, bank transfers, and eWallets—and that the 5% gateway fee is approved by the CBK to support system maintenance. The broader fee review, now paused by the court, was the first major overhaul in nearly two decades and was intended to bolster KWS's financial sustainability for conservation efforts. The Ministry of Tourism and Wildlife's impact statement projects the proposed fee hikes would increase KWS revenue from Sh7.41 billion in 2024 to Sh16.58 billion by 2028, funding critical anti-poaching patrols, habitat management, and infrastructure upgrades.
Despite these justifications, the tourism sector remains resolute. The KTF is demanding the immediate suspension of the 5% gateway fee, the restoration of the previous, more flexible eCitizen payment portal, and full compliance with the court order until the matter is resolved. The standoff highlights the delicate balance between funding Kenya's vital conservation work and maintaining a competitive and stable tourism industry, a cornerstone of the national economy.
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