Across East Africa, tourism has officially entered a high-growth era. Yet an analogue gap in digital payments and operational infrastructure threatens to prevent businesses from fully capitalising on the boom.
The region has moved well beyond the pandemic slowdown and is now outperforming many global tourism markets. In 2025, East Africa emerged as one of the world’s fastest-growing tourism regions.
Kenya alone welcomed 2.7 million international visitors, according to the Ministry of Tourism, a 12.97 percent increase from the 2.39 million recorded in 2024. The surge generated nearly Sh500 billion in tourism earnings.
The momentum extended across the region. Tanzania’s tourism revenue rose to an estimated $4.4 billion in 2025, up 12.82 percent from $3.9 billion the previous year. Uganda posted an even stronger performance, with tourism earnings climbing 26.56 percent from $1.28 billion to $1.62 billion.
These impressive numbers, however, mask structural weaknesses that continue to undermine the sector’s competitiveness. Long booking chains, fragmented reservation systems, cash-dependent transactions and inconsistent customer experiences are limiting growth and reducing efficiency.
Globally, about 40 percent of travel payments are now processed digitally. In Africa, however, digital payment adoption for travel bookings remains significantly lower. Many hotels, lodges and tour operators still rely on manual systems that slow operations, increase errors and make it difficult to deliver seamless guest experiences.
This is a missed opportunity. Kenya’s two decades of M-Pesa adoption have already created one of Africa’s most mature mobile payment ecosystems.
The challenge is no longer digital payments themselves but connecting them with booking platforms, accounting software and day-to-day business operations through modern, integrated technology.
If Kenya is to achieve its target of attracting five million international visitors and 10 million domestic tourists by 2027, accelerating digital transformation across the hospitality sector must become a priority.
That requires action on four fronts. Policymakers should strengthen data protection standards while offering incentives that help small businesses transition from cash-based operations. Software developers must design intuitive platforms backed by reliable customer support.
Technology providers should keep pricing transparent and transaction costs affordable for growing businesses.
Finally, digital solutions must integrate seamlessly with existing accounting systems, banking platforms and mobile money services to enable real-time data synchronisation, faster reconciliation and a smoother experience for both businesses and travellers.
The writer is Chief Commercial Officer, Pesapal
