Kenya Tourist Development Corporation

About Us

Background

Kenya Tourist Development Corporation (KTDC) is a corporate body established in 1965 through an Act of Parliament, Cap 382 of the Laws of Kenya. The Corporation is a specialized Development Financial Institution (DFI) with the mandate of facilitating and providing affordable development funding and advisory services for long-term investment in Kenya’s tourism industry. In fulfillment of this mandate, the Corporation has continued to provide project and loan funding to prospective investors besides offering business advisory services, in the form of consultancy services, market valuations, business plans and feasibility studies.

Two fundamental reasons dictated the need for a strong financial intermediary in Kenya’s tourism sector;

• Kenya obtained independence in 1963. As a newly independent country, Kenya needed to rapidly develop its industrial, agricultural and tourism sectors. KTDC was an instrument of choice to accelerate long-term investment, achieve rapid economic growth and create employment in the tourism industry envisioned in the national development plans.
• The financial sector traded in traditional commercial banking activities that do not support long-term investment in national development. KTDC was therefore a major developmental conduit for the Government in long term project financing in Kenya.

The KTDC Act therefore has specific provisions for funding of tourism investment in Kenya. Project financing for the tourism industry has been and remains the Corporations’ core business. During the past Strategic Plan (2008 – 2012), the Corporation instituted a number of policy actions, including amendments of subsection (3) (a) of KTDC Act to enhance the limit of KTDC’s borrowing power to Kshs one billion. These policy reforms are aimed at expanding the tourism sector investment opportunities and to address the achievement of the broad national macro-economic objectives as stipulated in the Vision 2030 and the goals set within the medium term plan, 2008-2012.

The Corporation, under the Vision 2030, was tasked with the development of 3,000 (three thousand) additional beds within the medium term plan, 2008 - 2012, in order to meet the growing demand for the Kenyan Tourism product, and a further development of 65,000 beds by 2030. It is envisaged, this will be achieved through credit funding to potential investors, for rehabilitation and upgrading of existing lodging facilities and investing in new 4 & 5 star hotels.

Kenya’s Vision 2030

The Vision 2030 is the Government’s long term blueprint to transform Kenya into a globally competitive and prosperous country with a high quality of life by the year 2030. The Vision is anchored on economic, social and political pillars and is expected to transform Kenya into a newly Industrializing middle income country that provides a high quality of life to all its citizens in a clean and secure environment.

Under the economic pillar, Tourism industry has been earmarked to contribute towards achieving an average economic growth rate of 10% per annum and sustaining the same until 2030. The social pillar seeks to create a just, cohesive and equitable social development in a clean and secure environment, while the political pillar aims at realizing an issue-based, people-centred, result oriented and accountable democratic system.

The Strategic Plan (2012 – 2016) is expected to accelerate expansion of Tourism sector as a contributor towards realization of Vision 2030. The plan sets out the roadmap, goals, objectives and strategies that the Corporation intends to pursue in the next five (5) years. This plan, therefore, provides the policy direction that the Corporation will espouse to propel her to the next level in the development agenda for the tourism sector.

With the promulgation of the new Constitution and coming into force the devolved system of Government, the Corporation will re-orient its investment strategies and objectives to ensure that her geographical presence is felt in the 47 counties and that lending is diversified to areas and products of untapped potential including development of niche products and to ensure that the development of tourism investments is in tandem with the Vision 2030.

Mid Term Plan (MTP): 2008 - 2012 & Flagship Projects

To realize the Vision 2030, the Government prepared the first Medium Term Plan (MTP, 2008 – 2012) which gave rise to flagship projects and programs expected to accelerate economic growth towards sustainable development of the country. The vision will facilitate the realization of the Millennium Development Goals (MDGs) by 2015 and has recognized the important role that Tourism sector will play in realizing the economic pillar.

The Corporation’s role in national development is significant in the financing of the tourism industry. The Corporation is recognized in the Tourism Act, 2011 as the lead financier for long term financing for the Tourism industry and in executing its mandate, will comply with the Financial Services Sector (FSS) and the proposed Development Financial Institutions (DFI) Bill, 2011.

The implementation of previous strategic plan 2008 – 2012, which coincided with the commencement of the Medium Term Plan (MTP) 2008-2012 for Vision 2030, formed the basis for various reform initiatives and projects instituted by the Corporation under the framework of flagship projects. These included  

• Mombasa Conventional Center
• Development of Roadside Rest areas
• Development of Tourist Information Center
• Adoption of the DFI reform strategy and compliance with the AADFI Prudential Standards
• Rebranding of KTDC Corporate image
• Control and Management of Non Performing Loans to a one digit level
• Facilitated the development of 1,600 bed capacity

During this Strategic Plan, 2012 – 2016 period, the Corporation will seek to finalize the necessary reform initiatives and bring into completion the above named projects and programs.

This plan re-defines the Corporation’s shared vision, mission, core values, activities, strategic objectives and resource requirements based on its mandate and prevailing socio-economic environment. More so, it identifies the necessary reforms that will be undertaken to ensure that the Medium Term objectives outlined in the MTP for tourism sector are achieved and mainstreamed in the MDGs.