Kenya’s Travel Industry Banks on Digital Payments as Regional Tourism Expands

Kenya’s travel industry is entering a new phase of regional growth, driven by increased cross-border tourism and a shift toward digital payment systems that are reshaping how agencies, hotels, and tour operators operate.

This year’s Kenya Travel Industry Business Awards (KeTIBA) brought together travel agents, airlines, digital platforms, hotel chains, and financial service providers to assess the sector’s opportunities and pain points.

The discussions pointed to a recovering industry that is expanding its services and adapting to the expectations of modern travellers who want speed, transparency, and seamless digital experiences.

Financial service providers at the event acknowledged this challenge, underscoring the need for stronger and more predictable settlement systems.

Equity Bank’s Director of SME Banking, Collins Wanyonyi, noted that efficiency in payments has become central to how travel business’s function.

“The industry runs on tight timelines,” he said.

“Airlines, hotels, and agents need payments to move in real time. Our work is to ensure the systems behind those transactions are reliable so businesses can serve travellers without delays.”

Across East Africa, travel is becoming more regional and free flowing. Passenger movement between Nairobi, Zanzibar, Mombasa, Kigali, Entebbe, and Arusha continues to rise, supported by improved air links and stronger tourism campaigns.

The movement is being fuelled by a blend of safari tourism, conference travel, weekend leisure trips, and business mobility.

For many travel agencies, this means higher volumes of bookings and greater pressure to offer fast and accurate service.

Behind the visible growth in tourism is a less visible but critical factor: payment systems that allow bookings, ticketing, and settlements to move smoothly.

Jonathan Curtis, Vice President at American Express, said premium travellers remain a key driver of revenue for airlines and hotels.

“We see consistently high spend among our travellers, especially those moving across the region,” he said.

“When payments are seamless, the entire tourism value chain benefits, from travel agents to hospitality providers.”

KATA Chief Executive Nicanor Sabula reiterated that the travel sector still depends heavily on credit arrangements. Many businesses operate on thin margins, balancing customer payments with airline settlement windows.

“Most travel agencies operate in a credit-heavy environment, customers book first and settle later, while airlines demand payment within strict timelines. This gap continues to be one of the sector’s biggest operational hurdles, especially during peak travel season,” Sabula said.

He noted that partnerships with financial players help agencies navigate these mismatches.

Sabula added that limited credit card limits have historically constrained agencies during high-demand periods such as school holidays and December travel, when booking volumes surge.

KeTIBA continues to serve as a barometer for professionalism in the travel sector, with peer-reviewed awards encouraging agencies to invest in better digital systems, improve customer service, and diversify their products.