Property owners in the Maasai Mara National Reserve have warned of an impending “mega scandal”, as the Narok County government pushes through new park leases and fees.
A section of the hotels and camps operating within the reserve now say there was no proper participation in the process, amid what they term “being arm-twisted” by the county government to sign the new 32-year leases, where they have been given a deadline of February 28, failure to which they will be thrown out.
There are about 39 tenants in the Mara, operating high-end hotel facilities, mainly camps which provide accommodation and hospitality services to visitors.
The investors have poked holes in the leases, questioning mainly the payments and beneficiaries of ground fees and bed-nights.
The county government is also said to have positioned middle-men and brief-case companies to collect millions in bed-night fees and other levies, including in the name of benefiting the community.
This, even as the national government distances itself with management of the reserve and key parks, which Wildlife Principal Secretary Silvia Museiya said are entirely in the hands of the county governments.
Last year, President William Ruto announced plans by the government to remit 50 per cent of the revenue generated from national parks to counties in which the conservancies are situated, even as he moved to announce the handing back of some parks among them Amboseli to the county.
“The county government is fully responsible,” PS Museiya told the Star.
Under the new leases at Maasai Mara, which the county government started offering to property owners the previous week (Thursday), there is a sub-lesser who is described as the holder of a valid lease over the property.
The sub-lesser will sub-lease the Maasai Mara Game Reserve land to property owners on behalf of the county government (the head lessor).
Ground rent varies between Sh2.5 million and Sh5 million depending on the size of the facility, with those with between 10 and 12 camp tents paying about Sh3 million.
According to a sample of the lease seen by the Star, the average rent for the premises shall be an annual ground fee of Sh3 million, with another $80 (Sh11,680) per bed night for adult non-resident (international visitors) and $40 (Sh5,840) for children non-residents.
The hotels or tented camps will pay Sh3,000 into the sub-lessor’s account for every local visitor that spends at their facilities, with the cost being per night billing.
Of the total revenues being collected, 10 per cent of the rent is to be deposited directly into the county government’s accounts.
The bulk of the monies, 90 per cent of the rent fees is to be deposited to the sub-lesser account, where it is not clear if it is the national government, even as concerns of briefcase companies being fronted to pocket part of the cash, including what is meant for the community.
Of the $80 paid as bed-night fees chargeable per adult non-resident, half of it will go directly to the sub-lessor account while the remaining is to be deposited to the county government’s account.
Of the monies paid as bed nights for non-resident children, $20 (Sh2,920) is to be deposited to the county government’s account with the other half going to the sub-lessor.
On the other hand, Sh1,500 of the bed-night chargeable per resident is to be deposited directly to the sub-lessor account, while the remaining similar amount goes to the county government.
“The rent and bed-night fees are subjected to an increment of five per cent (5%) per annum which increment shall not apply for the first 10 years of the signing of this lease,” it states in part.
The bed-night fees are payable on or before the 10th day of the following month.
Individuals or firms with properties are also paying land rates and other levies imposed by both the national and county governments.
The property owners shall maintain all the tents and the water supply sewerage, waste disposal, drainage system, electrical installations, and interior decorations in good repair and condition to the satisfaction of the sub-lessor.
They shall, at the expiration or sooner determination of the term, hand over the property to the sub-lessor in good and substantial repair and condition providing that the renewal option is not exercised.
No additional buildings, construction, or erection of tents shall be made beyond approved capacity as prescribed by the agreement, the lease indicates.
If the property owner is to sub-let, they are required to seek the consent of the Narok County government.
The sub-lessee must keep and maintain full and accurate records of all tourists accommodated overnight at the property, and shall at all times permit the sub-lessor or his authorised representative together with the Narok County government officials to have access to such records.
They are required to give at least 70 per cent of employment opportunities to the local people.
The sub-lessor shall also prevent livestock incursion in the Maasai Mara National Reserve.
The lease may be terminated at any time by either party by giving not less than six months calendar months’ notice in writing, specifying the grounds for such termination.
The sub-lesser can also initiate termination if rent or bed-night fees are not paid for six months. The lease will also be terminated if the operating company goes into liquidation or is placed under a receiver manager.
According to hoteliers, the majority of the property owners have been reluctant to sign the leases, citing unclear payment processes and beneficiaries.
“There are a number about three, who signed under duress,” a source familiar with the process, told the Star," There are a lot of questions, especially on payments where some groups are being fronted which we suspect are proxies."
Last year, the county government held three meetings– at Keekorok Lodge (Maasai Mara), Sarova, and Serena (Nairobi), on the lease terms and other charges touching on the reserve, with the hotel and tourism industry players widely being left out, according to the property owners.
The Kenya Association of Hotelkeepers and Caterers (KAHC) said it is concerned over its members’ welfare, but it cannot do much as it was left out in the process.
“The leases are between the county government and the property owners but we are determined to intervene when it affects our members. People are scared that if they don’t sign, they will not have property to operate,” CEO Mike Macharia told the Star on telephone.
The Kenya Association of Tour Operators (KATO) is also concerned that spiraling effects coming from the county government’s decisions, including operating terms for properties and park levies, will catch up with its members at a later stage, which will hit businesses and affect tourist numbers to the Mara.
Efforts to reach Narok governor Patrick Ole Ntutu over the past month have proved futile, as our calls and text messages went answered.
Tourism executive Johnson Saruni referred the Star to the County Secretary Mayiani Tuya, who could also not be reached.
“For the lease, the drawer is the AG (Attorney General), but the best person to talk to will be the county secretary,” he told the Star on the telephone.
Meanwhile, tourism stakeholders have warned that Maasai Mara risks losing out to Tanzania’s Serengeti, in the wake of changes in park fee terms.
Apart from paying a premium for accommodation, tourists are also paying park entry fees which have been increased to $ 100 (Sh14,600 ) per non-resident adult per day from January 1, 2024, to June, after which it will go up to $ 200 (Sh29,200) starting July 1. Children will pay $50 (Sh7,300).
The park fees are for 12 hours (6am-6pm), with guests who arrive in the Mara as late as 4pm paying the full amount, despite having barely two hours for Safari.
Masai Mara National Reserve sits on 1,510 square kilometres of land and is the top visited destination in Kenya.
Neighbouring Tanzania is charging $82 (Sh11,972) inclusive of VAT at the Serengeti National Park.
“We have started receiving cancellations with guests opting for Tanzania,” a reservations manager at one of the facilities told the Star.
Tourism stakeholders in the country have since moved to court to protest the park entry fees and terms.
“We are in court so I wouldn’t want to discuss this, but what is the intention? We don’t think it is right..it is too much. We should sit down and address the concerns of the industry,” KATO chief executive Fred Kaigua said.
KAHC said it has sought the audience of the county government to address sector players’ concerns, including the county’s Finance Act, to no success.