Kenya recorded a sharp rise in international tourist arrivals in the first quarter of 2026, but the increase has yet to translate into strong hotel occupancy across the country.
The East African country welcomed 506,622 international arrivals through Jomo Kenyatta International Airport (JKIA) and Moi International Airport (MIA) in the first quarter of 2026, representing a 13.1 per cent increase compared with the same period last year.
However, average hotel occupancy across the country stood at just 29.29 per cent, according to Knight Frank’s Kenya Market Update – H1 2026. The figures mean that, on average, more than seven out of every 10 available hotel rooms remained unoccupied during the period.
The contrast highlights an uneven recovery in Kenya’s hospitality industry, with rising visitor numbers not translating into equally strong hotel performance across the country.
Knight Frank said the increase in international arrivals contributed to only a 0.42 percentage-point improvement in average hotel occupancy. “This suggests that the recovery has been uneven,” the report states.
Coast, Nairobi lead hotel performance
The strongest hotel performance was concentrated in Kenya’s established tourism and business centres.
The Coast accounted for 50.09 per cent of occupied room nights, while Nairobi accounted for 22.71 per cent. Average occupancy was around 60 per cent at the Coast and approximately 50 per cent in Nairobi, according to the report.
The Coast includes some of Kenya’s best-known leisure destinations, including Diani, Mombasa, Watamu and Malindi, which continue to form a major part of the country’s beach and marine tourism offering.
Nairobi, meanwhile, remains an important business and conference destination, with hotels relying heavily on corporate travellers, international organisations and events.
The capital also offers wildlife attractions, including Nairobi National Park, allowing visitors to combine business trips with leisure activities.
Beyond the two leading markets, Kenya has a broad tourism circuit that includes destinations such as the Maasai Mara, Amboseli and Ol Pejeta. However, Knight Frank’s national occupancy figures indicate that increased visitor arrivals have not produced a uniform recovery across the wider hospitality market.
Hospitality sector records strong growth
Despite the relatively low hotel occupancy rate, the wider accommodation and food services industry recorded strong growth. The sector expanded by 14.7 per cent in the first quarter of 2026, compared with 8.0 per cent during the corresponding period in 2025.
The performance came as Kenya's broader economy continued to expand, with the report recording real GDP growth of 5.3 per cent in Q1 2026, compared with 4.9 per cent in Q1 2025.
Tourism investment also remained active. Global hotel franchisor Choice Hotels International entered the African market through Kenya, adding three properties to its portfolio. CityBlue Hotels also announced developments in Watamu and Diani, pointing to continued investor interest in Kenya's coastal hospitality market.
Knight Frank described the developments as evidence of “sustained investor interest in Kenya’s upscale coastal hospitality market”.
The continued investment is notable given the relatively low national hotel occupancy rate, suggesting that investors remain optimistic about the long-term prospects of Kenya’s tourism industry.
Holiday travel dominates
Holidaymakers remain the largest category of international visitors to Kenya. According to Knight Frank, holidays accounted for 47.8 per cent of international arrivals in 2025, up from 44.13 per cent in 2024. Business travel, however, accounted for 25.21 per cent, down from 26.80 per cent in 2024.
The figures point to a tourism market increasingly driven by leisure travel, while business tourism remains an important component of hotel demand, particularly in Nairobi. For Kenya’s hospitality industry, the challenge is therefore not simply attracting more visitors.
The latest figures raise questions about how widely tourist traffic is distributed, how long visitors stay and whether more destinations can capture a greater share of tourism spending.
The Coast and Nairobi continue to record stronger hotel performance, while the national occupancy average remains below 30 per cent.
Kenya is attracting more tourists. But the latest data suggests that getting those visitors through the airport is only part of the challenge. The bigger task is turning rising arrivals into occupied rooms and spreading the benefits of tourism across more parts of the country.
