Kilifi hoteliers now claim that they are facing imminent shutdown due to the new SRC guidelines that put limit Daily Subsistence Allowances (DSA) to distances of 50km and above.
They said that the SRC guidelines have severely impacted their Daily Subsistence Allowances (DSA) to distances of 50km and above, and investments and has drastically affected conference tourism which is a vital revenue source for coastal hotels.
Kilifi South Hotels and Restaurant Association (KISHRA) Chairperson and Mtwapa Country Resort General Manager, Michael Mwiha, says the hospitality sector has faced significant challenges since the new guidelines came into effect.
Mwiha said they have lost businesses, employment opportunities have decreased, and facilities can no longer sustain themselves.
He further said that the SRC’s decision has not only harmed hotels but also caused a ripple effect through the supply chain, adversely affecting suppliers and local economies.
They are urging government to review the SRC Act of 2011, calling for harmonization and a level playing field, saying most facilities will close down very soon if this punitive law continues to be enforced.
“Many hotels in the region are heavily indebted, and the loss of revenue may lead to our properties being seized by auctioneers. The current guidelines have redirected much of our business to other regions, notably Naivasha, leaving Mtwapa at a significant disadvantage and we are appealing to the national government to prioritize tourism-dependent areas for conferences to be held here,” Mwiha said.
Yvonne Ayieko the secretary on her part said the bureaucratic challenges have compounded the issue, particularly for foreign travelers.
We did a letter through our lawyer representing 72 establishments, but we have not received any response,” she said.
