Three individuals running hospitality businesses in Naivasha are now facing legal proceedings for allegedly withholding a statutory levy meant to support Kenya’s tourism development agenda.

At the centre of the case is Diana Mumbi, the manager of Elmar Resort and Spa, who appeared before the Naivasha Law Court over claims she deliberately failed to pay Sh923,266.44 in tourism levy arrears for a full financial year spanning July 2023 to June 2024.

Elmar Resort and Spa is registered as a regulated tourism facility within Nakuru County.

She denied the allegations and secured her release after posting a cash bail of Sh20,000.

Two other resort executives were similarly charged during the same court session.

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John Ngure Mahta, listed as a director of Crayfish Camp, and James Munene Moses, associated with Makuti Pub, are both accused of neglecting to submit the required 2 per cent tourism levy.

They also entered not guilty pleas.

The legal action is anchored on Section 105(1) as read with Section 105(5) and Section 112(2) of the Tourism Act, Cap 38, which criminalises the failure to remit the tourism levy from eligible businesses.

According to the Tourism Fund, “such non-compliance not only breaches statutory obligations but also attracts penalties as stipulated under the applicable legal framework.”

By law, all establishments listed under the Ninth Schedule of the Tourism Act must surrender 2 per cent of their earnings to the Tourism Fund, a state corporation tasked with financing tourism training, promotion, and infrastructure in Kenya.

Despite their denial of wrongdoing, the three accused are expected to return to court later as the case proceeds through the judicial system.