Since its inception, the Internet provided unprecedented opportunities for businesses to leverage their marketing and business potential. The Internet facilitated global representation, travel distribution and marketing of tourism. This study aimed at developing a thesis surrounding the issues that influence the adoption of online travel distribution technology by identifying and evaluating the challenges that face the adoption of E-Tourism in Kenya. It also sought to find out whether there were significant associations between the challenges and Internet preference. The study further investigated the nature of travel distribution systems in use in the travel companies. The Data were collected using a Questionnaire and a structured Interview schedule. Quantitative data were analyzed using: descriptive statistics and inferential statistics, which were calculated using the F-test, Correlation, Principal component analysis and Multinomial logistic modeling techniques. Qualitative data analysis, were done by organizing and analyzing the content according to major themes and objectives of the study.