Domestic tourism misses target as high cost of living bites

Local tourists enjoy boat rides at Dunga Beach in Kisumu on April 11, 2026, along the shores of Lake Victoria. 

Photo credit: Alex Odhiambo | Nation Media Group

Kenyans cut back on travel as the rising cost of living squeezed household budgets, leaving domestic tourism below target even as the overall sector earnings, including international visitors, earned a record Sh564 billion in the year to June 2026.

Domestic bed-nights reached 5.1 million in financial year 2025/26, a marginal 1.8 percent rise from 5.01 million a year earlier, the State Department for Tourism says in the latest report on Industry performance.

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