The total contribution of travel and tourism to Kenya's economy last year was 403.7 billion Kenyan shillings. Ignacio Palacios / Lonely Planet Images
The total contribution of travel and tourism to Kenya's economy last year was 403.7 billion Kenyan shillings. Ignacio Palacios / Lonely Planet Images
The total contribution of travel and tourism to Kenya's economy last year was 403.7 billion Kenyan shillings. Ignacio Palacios / Lonely Planet Images
The total contribution of travel and tourism to Kenya's economy last year was 403.7 billion Kenyan shillings. Ignacio Palacios / Lonely Planet Images

Kenya on quest for visitors from UAE


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The economic links between Kenya and the Gulf date back centuries to when Arab traders travelled to the East African coast.

These days, the trade links between the regions are growing stronger, with the UAE having reclaimed its position as the top exporter to Kenya last year. Yet the connections go beyond trade, with aviation and tourism links between the two countries having become newly strengthened.

The number of flights between Kenya and the UAE are on the rise. Meanwhile, Kenya is increasingly focusing on attracting tourists from the Emirates as its industry reports an overall decline in business this year, dragged down by kidnappings of tourists by Somali pirates and weakness in the euro-zone economy.

The number of visitors to Kenya from the UAE grew by 14.2 per cent in the first quarter of this year compared with the same quarter last year, according to Kenya's ministry of tourism. At the same time, the number of tourists from Italy has declined by 14.3 per cent, with France's numbers down 28 per cent and Germany's off by 7.3 per cent.

Despite the increase in the number of travellers from the UAE, this segment of the tourism market in Kenya still has plenty of growth potential, said Anjali Devani, the managing director of Travel Wild, a travel operator based in Nairobi.

"The [new] flights have made a huge difference," she added. "[Carriers have] increased the capacity for flights and [brought] air fares down".

The total contribution of travel and tourism to Kenya's economy last year was 403.7 billion Kenyan shillings (Dh17.58bn), or 13.7 per cent of GDP, according to the World Travel and Tourism Council.

"Tourism is a very important aspect of Kenyan economy," said Abraham Joseph, the Middle East and Pakistan area manager for Kenya Airways."The flights are also popular among traders from across Africa who travel to Dubai to buy goods."

Mr Joseph said the carrier would be doubling its daily flights to Dubai as soon as the company got the necessary equipment.

UAE airlines are also capitalising on the demand for travel between the regions.

Etihad Airways launched daily flights to Nairobi at the beginning of last month as the Abu Dhabi airline expands in Africa.

Emirates Airline also has direct flights to Kenya's capital from Dubai. Emirates also has flights into Mombasa. Air Arabia, the budget carrier based in Sharjah, also offers a direct service to Nairobi.

In November, the UAE and Kenya signed a double-taxation avoidance agreement, which included the clause that all the UAE's national carriers would be exempt from taxes in Kenya, according to a statement from Wam, the Emirates news agency.

In 2009, Kenya's tourism board opened an office in Dubai.

The UAE is likely to become an increasingly important source of tourists for the country as it tries to diversify the markets it taps for tourists, hoteliers say.

"Last year was a vintage year," said Paul Chaulo, the manager of the Mara Serena Safari Lodge, which is located in the Masai Triangle of the Masai Mara National Reserve and is a luxury base for tourists on safaris.

"But this year, for the whole of Mara, it has been pretty low," he adds, noting that its key markets have been affected by the euro-zone crisis. "In Kenya, we are anticipating the elections - so that has also a little bit affected our business."

Although the Mara is far from the Somali border, some tourists consider Kenya as a whole as unsafe, he said.

Occupancy at the hotel has fallen to about 60 per cent in the first quarter of this year from about 85 per cent in the same months last year. If the destination is marketed well to the Gulf region, Mr Chaulo said, there was significant potential for growth.

"The Middle East is a fast-growing market," he said.

Sarova Mara Game Camp, another luxury safari resort, said the property had an increase in visitors during the unrest in the Middle East and North Africa (Mena) last year, as many travellers opted for holiday destinations outside of the Mena region.

Business has been down so far this year compared with last year, though. But the number of travellers from the Gulf region is growing, said Francis Msengeti, the lodge manager at Sarova Mara Game Camp.

"It started with the expatriate market because … if you're an Australian working in Dubai, and your dream has been always to go to a Mara, it's a shorter flight," he says. "But we've started seeing more and more business from the [nationals]. It's a growing market and we're very positive about it."

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

How much do leading UAE’s UK curriculum schools charge for Year 6?
  1. Nord Anglia International School (Dubai) – Dh85,032
  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
  4. Jumeirah English Speaking School (Dubai) – Dh59,728
  5. Gems Wellington International School – Dubai Branch – Dh58,488
  6. The British School Al Khubairat (Abu Dhabi) - Dh54,170
  7. Dubai English Speaking School – Dh51,269

*Annual tuition fees covering the 2024/2025 academic year

If you go:
The flights: Etihad, Emirates, British Airways and Virgin all fly from the UAE to London from Dh2,700 return, including taxes
The tours: The Tour for Muggles usually runs several times a day, lasts about two-and-a-half hours and costs £14 (Dh67)
Harry Potter and the Cursed Child is on now at the Palace Theatre. Tickets need booking significantly in advance
Entrance to the Harry Potter exhibition at the House of MinaLima is free
The hotel: The grand, 1909-built Strand Palace Hotel is in a handy location near the Theatre District and several of the key Harry Potter filming and inspiration sites. The family rooms are spacious, with sofa beds that can accommodate children, and wooden shutters that keep out the light at night. Rooms cost from £170 (Dh808).

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COMPANY PROFILE

Company name: Letstango.com

Started: June 2013

Founder: Alex Tchablakian

Based: Dubai

Industry: e-commerce

Initial investment: Dh10 million

Investors: Self-funded

Total customers: 300,000 unique customers every month

If you go...

Etihad Airways flies from Abu Dhabi to Kuala Lumpur, from about Dh3,600. Air Asia currently flies from Kuala Lumpur to Terengganu, with Berjaya Hotels & Resorts planning to launch direct chartered flights to Redang Island in the near future. Rooms at The Taaras Beach and Spa Resort start from 680RM (Dh597).

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