High Court Rules Bars With Guest Rooms Must Hold Tourism Licences

The High Court has upheld the requirement for bars with guest rooms to obtain a tourism licence, ruling that such establishments must comply with regulations set by the Tourism Regulatory Authority (TRA).

The case centred on Beer Inn, a village bar in Kwale County with eight rooms, which was owned by Japhet Noti Charo. Mr Charo argued that his business, which mainly served local customers and occasionally provided accommodation for lorry drivers, did not fall under the category of a tourist establishment.

However, the TRA maintained that the combination of a bar and guest rooms classified Beer Inn as a guesthouse under the Tourism Act, necessitating a licence.
The court sided with the TRA, saying that any business offering accommodation for more than 24 hours, regardless of the reason for stay, qualifies as a tourism-related service.

By admitting that lorry drivers occasionally used his rooms, Mr Charo’s business was deemed to fit this definition. As a result, Beer Inn was ruled to be subject to the licensing requirements.

The ruling reinforced that Section 98 of the Tourism Act prohibits the operation of tourism services without a valid licence. It also confirmed that Beer Inn’s sale of alcoholic beverages, including beer and palm wine, placed it under the category of Class B enterprises, further justifying the TRA’s actions.

As a consequence, Mr Charo must now obtain the required licence and pay penalties dating back to 2023.