Seafood businesses in Diani are banking on increased tourist arrivals during the upcoming peak tourism season to cushion them against rising operating costs that have squeezed profit margins over the past several months.
Private seafood chef Kyarie Njiraini says the hospitality industry continues to face mounting expenses driven by higher fuel prices, electricity costs and the increasing prices of food commodities, making it more expensive for small enterprises to operate.
Njiraini, who specializes in seafood cuisine and private dining experiences for guests staying in villas, holiday homes and resorts along the South Coast, said the cost of sourcing fresh seafood has increased as transport expenses continue to rise.
“My business depends on fresh seafood every day. When fuel prices increase, fishermen and suppliers incur higher transport costs, which are eventually passed on to us. Sometimes we absorb the extra cost, while at other times we have to adjust our prices,” he said.
He noted that the rising cost of cooking oil, vegetables, spices and other essential ingredients has further reduced profit margins for hospitality businesses.
To manage escalating electricity bills, Njiraini invested in a small solar power system to supplement grid electricity. However, he said the system is insufficient during prolonged cloudy weather, affecting refrigeration and food storage.
“We installed solar panels to reduce electricity costs, but they cannot generate enough power when there is limited sunshine. At one point I lost a significant amount of seafood after the freezer failed because there was not enough power,” he said.
Njiraini also pointed to foreign exchange and transaction charges on payments made by international visitors as another challenge affecting earnings.
“We serve many international guests who pay in foreign currencies. By the time the payments are processed and converted, we sometimes receive less than expected, yet the cost of running the business continues to increase,” he said.
Despite the challenges, he expressed optimism that the high tourism season will boost demand for hospitality services and create more business opportunities across the tourism value chain.
“Diani experiences increased visitor numbers during the peak season, which benefits not only hospitality businesses but also fishermen, farmers, transport operators and other local suppliers,” he said.
Njiraini added that tourism events hosted in Kwale County continue to stimulate economic activity by attracting visitors and supporting local enterprises.
He called for policies that support small businesses through affordable energy, predictable taxation and sustained investment in tourism promotion to strengthen the sector’s contribution to the local economy.
By Evelyn Njaramba
