While the hospitality industry in the Kenyan Coast has adopted Information and Communication Technology (ICT), application of the same is limited to internal operations and control. The industry’s e-business adoption lags behind similar industries such as tours and travel. Earlier research in e-business adoption does not suggest intervention for improvement of Small and Medium Enterprises’ (SMEs) status and lacks focus on any specific industries. The aim of this chapter is to address this gap by analyzing the Kenya Association of Hotelkeepers & Caterers’ (KAHC) e-business readiness using a three-interrelated-level framework; namely, firm level, market and industry, and institutional and regulatory levels. This chapter presents results of an ongoing project that we are currently working on, related to one of the authors’ graduate degree research program that began in 2008. In this research, we adopt a survey approach that is supplemented by case studies of other countries’ implementations from literature. Findings show that the hospitality industry at the Kenyan coast is not ready for e-business adoption and we develop a framework to help facilitate readiness. The findings imply that as a competitive strategy, establishments which have been competitors need to become collaborators; and KAHC and its membership need to adopt e-business to not only remain competitive, but also to survive. The findings are beneficial to KAHC and the Kenyan government in evaluating the status of e-business readiness as well as adoption in similar industries. Other developing countries can also adopt the framework.