roles of hotel and restaurant act 2007 - kenya

PART I-PRELIMINARY

1. This Act may be cited as the Hotels and Restaurants Act.

2. In this Act, unless the context otherwise requires-

“the Authority, means the Hotels and Restaurants Authority established

by section 3;

“Charge” means a charge made for accommodation. Food or drink, or any combination thereof, in a hotel or restaurant, and a service charge imposed in respect of the supply of the accommodation, food or drink;

“A hotel” means premises other than those specified in the Third Schedule of VAT Cap 476 on which accommodation is supplied or available for supply, with or without food or all other services in exchange for money or money’s worth, and includes:

§  Service flats

§  Service Apartments

§  Beach Cottages

§  Holiday Cottages

§  Game Lodges

§  Safari Camps

§  Bandas

§  Holiday Villas

PART II – THE HOTELS AND RESTAURANTS AUTHORITY

Roles of hotel and restaurant act 2007 in the shaping of Kenya hospitality

Hotel and Restaurants Authority was established to regulate and standardize hotels and restaurants. New hotel, resort and lodge projects are required to be licensed first before commencing construction. This is aimed at ensuring quality and compliance with relevant laws and regulations and promoting excellence in the hospitality sector.

The tourism industry is regulated by two Acts of Parliament -the Hotels and Restaurant Act (Cap 494) and the Tourist Industry Licensing Act (Cap 381). The former was enacted in 1972 to provide for licensing of hotels, hotel managers and restaurants with a view to regulate hotels and restaurants, for the imposition of a levy for training people to be employed in hotels and restaurants. Licensing and regulation under the Act is administered through the Authority, a board constituted by the Minister for Tourism

Three types of licenses are issued under Cap 494: Annual renewals, classification certificates and entry permits. In considering applications for hotel licenses, the board requires operators to present a title deed or lease agreement for the premises, copies of work permit where applicable, health clearance certificate, tariff (bed and room charges, and menu) and an appropriate license fee according to category, size, bed capacity and extent of services provided.

For restaurant licenses, the following are required: A certificate of incorporation or PIN number, health certificates, copy of tariffs, lease agreement, copies of manager’s professional qualifications, work permit for foreigners, license fee and filled forms HRA 1 and FM 2.

1.      Members of the Hotels and Restaurants Authority

a.       Chairman appointed by the Minister;

b.      Not  less than seven and not more than nine persons appointed by the Minister, of whom at least one shall be appointed by reason of his knowledge of the hotel industry and international tourism;

ii) At least one shall be appointed to represent the interests of hotel keepers;

iii) At least one shall be appointed to represent the interest of restaurant keepers;

iv) At least one shall be appointed to represent the interest of hotel and restaurants employees; and

c.       The Permanent Secretary of the Ministry, or a person deputed by him in writing to take his place as a member of the Authority.

2.      Before the Minister makes an appointment under this section, he shall require the person to be appointed to declare whether he has any, and if so what, financial interest in any hotel or restaurant.

3.      It shall be the duty of the Authority to keep under review the standards of hotels and restaurants and to advise the Minister on the improvement and development of hotels and restaurants and on any other matters which may be referred to it by the Minister.

4.      The Authority shall have powers

a.       to issue licenses in accordance with section 5;

b.      to  investigate and determine complaints in accordance with section 7;

c.       to vary, suspend and cancel licences in accordance with section 8.

5.      In the exercise of its functions under this Act, the Authority, shall be guided by the consideration of promoting the well-being and development of the hotels and restaurant industries as a whole, as well as the interests of persons using hotels and restaurants.

6.      The First Schedule shall have effect with respect to the Authority

PART III-LICENSING

 (1) After the appointed day

a.       no premises shall be used or kept as a hotel unless there is in force a valid hotel licence in respect of such hotel;

b.      no person shall exercise overall control over the day-to-day operation of a hotel, whether he is the owner or the manager of such hotel, unless he is the holder of a hotel manager’s license;

c.       No premises shall be used or kept as a restaurant unless there in force a valid restaurant licence in respect of such premises.

d.      No person shall exercise overall control over the day-to-day operation of a restaurant, whether he is the owner or the manager of the restaurant, unless he is the holder of a restaurant manager’s licence.

PART IV-DUTIES, LIABILITIES AND PRIVILEGES OF HOTEL KEEPERS

(1)   Every holder of a hotel licence shall keep a register in his hotel and shall enter or cause to be entered in the register the name and address of every guest who stays at the hotel and such other particulars as may be prescribed.

(2)   Every holder of a hotel licence shall enter or cause to be entered regularly in a book kept for the purpose all such particulars (other than particulars prescribed in respect of the register required by subsection (1) to be kept) as may be prescribed.

(3)   Any person who fails to comply with this section, or who makes this section to be kept any entry which he knows or has reason to believe to be false, shall be guilty of an offence and liable to a fine not exceeding five thousand shillings or to imprisonment for a term not exceeding six months or, both.

PART V- REGULATION OF PRICES.

(1)   The Minister may at any time carry out a review of the charges made by hotels or restaurants in any area, and as a result of such a review he may, after giving not less than one month’s notice in the Gazette of his intention to do so by order, fix minimum or maximum charges which may be made by any hotel or restaurant, in that area.

(2)   An order under subsection (1) may-

(a)    Either specify the charges themselves or prescribe the method by which they are to be calculated;

(b)    Be made applicable to specified hotels or restaurants or to hotels or restaurants of a specified class.

(3)   Where any charge is made in a hotel or restaurant which exceeds the maximum charge or which is below the minimum charge fixed by a tariff order relevant to that hotel or restaurant, the holder of the restaurant licence or, as the case may be, the manager of the hotel shall be guilty of an offence and liable to a fine not exceeding one thousand shillings or to imprisonment for a term not exceeding one month or to both, or in the case of a second or subsequent offence to a fine not exceeding five thousand shilling or to imprisonment of a term not exceeding six months or both.

PART VI- CATERING TRAINING AND TOURISM DEVELOPMENT LEVY

15. In this Part- “the Fund” means the training and tourism development levy fund established by section 17” “ levy” means a catering training and tourism development levy imposed by an order under section 16, and “levy order” means that order; “ the Trustees” means the Catering and Tourism Development Levy

Trustees established by section 18.

(1)    The Minister may, by order, require payment by the owners of hotels and restaurants of a Catering Training and Tourism Development Levy.

(2)    A levy order may provide for the amendment of any previous levy order and may make different provisions in relation to hotels and restaurants and in relation to different classes of hotels or restaurants.

(3)    A levy order may contain provisions as to the evidence by which a person’s liability to the levy, or his discharge of that liability, may be established, and as to the time at which any amount payable by any person by way of the levy shall become due.

(4)    All moneys, received in respect of the levy shall be paid into the Fund and, if not paid on or before the date prescribed by the levy order, the money and any sum payable under subsection (5) shall be a civil debt recoverable summarily by the Trustees.

(5)    If any person fails to pay any amount payable by him by way of the levy on or before the date prescribed by the order, such person shall be liable to a penalty of five thousand shillings and thereafter to an additional penalty of three per centum of the amount of the levy due; for each month or part thereof during which the amount due remains unpaid.

PART VII-SUPPLEMENTARY

(1)   The Minister may, by notice in the Gazette, direct that the manager of any hotel shall not receive any guest therein except with the written authority of the Minister or such person, officer or bureau, as the Minister may designate for the purpose.

(2)   A notice under subsection (1) may be given with regard to a particular hotel, or to a particular class of hotel, or to hotels within a specified area.

Where the holder of a hotel licence or restaurant licence has such licence cancelled, or has his application for a renewal of such licence (to take effect upon the expiration of such licence) refused, he shall be entitled, on payment of a proportionate part of the prescribed fee, to be granted a licence of the kind cancelled or refused for such period, not exceeding six months, as the Authority considers adequate to enable the business to be wound up or disposed of.

(1)    any person authorized in writing by the Authority for the purpose, may, at all reasonable times enter without warrant any premises on which he has reasonable ground for believing that a hotel business or restaurant business is being carried on, to see whether this Act and any other written law is being complied with, and

a.       examine and take copies of any register, book, account or document found on the premises relating to or appearing to relate to any hotel or restaurant.

b.      take possession of any register, book, account or document found on those premises which he has reasonable grounds for suspecting to be or to contain evidence of an offence under this Act or any other written law.