The Privatisation Authority, a state entity, has launched the process of privatising over four hotels in a move aimed at elevating them to profitability.
A notice published in a local daily on Tuesday, March 12, detailed the authority's call for procurement services from qualified individuals to offer transaction advisory services during the sale process.
The hotels slated for privatisation, currently under the control of the Kenya Development Corporation (KDC), include Golf Hotel Limited, Sunset Hotel Limited, Mt Elgon Lodge Limited, and Kabarnet Hotel Limited. Additionally, Mombasa Beach Hotel, Ngulia Safari Lodge, and Voi Safari Lodge, affiliated with Kenya Safari Lodges and Hotels Limited, are part of the privatisation plan.
"The Privatisation Authority (PA) invites sealed proposals from interested and eligible consultants for the provision of transaction advisory services," the notice stated.
The proposal for privatisation was initially floated earlier in the year and received approval during a Cabinet meeting led by President William Ruto at State House.
The decision to privatise aligns with efforts to revitalize the tourism sector, buoyed by Kenya's Visa-Free entry policy, aiming to generate increased employment and business opportunities within the divested enterprises and across the tourism industry as a whole.
KDC's Investment Prospectus Report highlighted the need for a turnaround in the hotels, particularly after grappling with the impacts of the COVID-19 pandemic.
Sunset Boulevard, situated in Kisumu, currently employs one full-time staff member and approximately 16 casual laborers. Meanwhile, Golf Hotel in Kakamega, co-owned by the Kakamega County Government, boasts 47 full-time employees and is valued at Ksh160 million.
Mombasa Beach Hotel, with 150 employees, and Mt Elgon Lodge, classified as a three-star facility, are also included in the privatisation plan.
Last year, Ruto's Cabinet authorized the privatisation of 11 state corporations, including the Kenyatta International Conference Center and the Kenya Pipeline Authority. Ruto emphasized the potential for profitability under private management, citing the substantial government expenditure to sustain their operations.
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Category: News
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