Abstract
This paper looks at issues surrounding sustainable tourism as a tool for local socio-economic development in Kenya, using the case study of Mombasa Resort Town. Illustrated by primary data from field interviews and surveys in Mombasa, backed by secondary data, it finds that due to the nature of the Kenyan tourism industry (external control and management of tourism establishments, limited local involvement and high leakage rates), the industry has not played an effective role in local socio-economic development. Ways forward are suggested.