Govt Targets Chale, Kiwayu, and Six Other Coastal Sites for Privatisation in New Tourism Plan

Mombasa and Lamu beaches along Kenya's coastline.
Mombasa and Lamu beaches along Kenya's coastline.
Photo
Kenyans.co.ke

The Ministry of Tourism has revealed plans to privatise five beaches and four Islands in Kwale, Lamu, and Kilifi counties to boost investment in the sector.

According to the ministry's draft National Tourism Strategy 2025-2030, the islands targeted for privatisation include Chale, Funzi, Kiwayu, and Manda, while the beaches included are Takaungu, Msambweni, Vipingo, Kipungani, and Matondoni.

The beaches will be placed under various privatisation models, including private ownership, private concessions, or long-term leasing agreements, according to the strategy.

The privatisation of these establishments aims to encourage the development of facilities such as luxury beach clubs, boutique hotels, and private marine access points for yachts and diving, as well as helipads and private airstrips, according to the ministry.

An image showing beaches and islands identified by the Ministry of Tourism as prime for privatisation, October 2025.
An image showing beaches and islands identified by the Ministry of Tourism as prime for privatisation, October 2025.
Photo
Alfonce Valerio, Kenyans.co.ke

Some other notable developments planned for the beaches after the planned privitisation include a golf resort at Vipingo, private beach resorts, luxury wellness and spa facilities in Msambweni, and an exclusive eco-lodge offering sport fishing, diving experiences on Kiwayu Island in Lamu, and barefoot luxury lodges, island escapes, and marine ecotourism in Funzi Island.

The ministry has, however, assured that it will lay out strategies, including setting a minimum capital investment, environmental safeguards, employment quotas, and sustainability commitment to ensure responsible investment.

"This will entail identification and designating specific beaches and islands for private investment under either private ownership, private concessions, or long-term island leasing models," the report stated.

"The aim is to encourage the development of high-end facilities such as luxury beach clubs and boutique hotels, private marine access points (for yachts, diving, etc.), and helipads or private airstrips," it added.

Additionally, the ministry has said that it will introduce a special beach classification framework, which aims to market Kenyan beaches for different visitor segments.

The proposed categories include premium beaches, family and leisure beaches, ecotourism and cultural beaches, and adventure and sports beaches.

"This will entail establishing clear categories to define and market Kenya’s beaches for different visitor segments modelled after the National Park Categorisation Framework adopted by the Kenya Wildlife Services," the ministry stated.

"Clear standards for the destination and facilities, branding and marketing strategy, investment promotion, and a focused beach management programme will be implemented for each beach category," it added.

Following the development, the Tourism Principal Secretary, John Ololtuaa, has invited the public to provide feedback on the strategy, which is available at the ministry's website, through public participation.

In a public notice on Sunday, October 26, the PS stated that public participation will be held from Monday, October 27, to Wednesday, October 29, across the country.

Tourism Cabinet Secretary Rebecca Miano giving a speech on September 30, 2025
Tourism Cabinet Secretary Rebecca Miano giving a speech on September 30, 2025.
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Ministry of Tourism