The Privatisation Authority (PA), a state body, has commenced the process of privatising more than four hotels with the aim of enhancing their profitability.
In an announcement published in a local newspaper on Tuesday, March 12, the authority issued a call for procurement services from suitably qualified individuals to offer transaction advisory services throughout the sales process.
Furthermore, it clarified that the hotels earmarked for privatisation currently fall under the jurisdiction of the Kenya Development Corporation (KDC).
“The Privatisation Authority (PA) invites sealed proposals from interested and eligible consultants for the provision of transaction advisory services,” stated a portion of the notice.
The idea of privatising these hotels was initially proposed earlier in the year, receiving approval from a Cabinet meeting led by President William Ruto at State House.
The hotels slated for privatisation include Golf Hotel Limited, Sunset Hotel Limited, Mt Elgon Lodge Limited, and Kabarnet Hotel Limited.
Others on the list are Mombasa Beach Hotel, Ngulia Safari Lodge, and Voi Safari Lodge, which are affiliated with Kenya Safari Lodges and Hotels Limited.
“This initiative is in line with the ongoing recovery of the tourism sector, bolstered by the Visa-Free entry policy in Kenya, and is expected to generate increased employment and business opportunities within both the divested enterprises and the broader tourism sector,” concluded the Cabinet.
According to the Investment Prospectus Report by KDC, the hotels require revitalisation following the challenges posed by the COVID-19 pandemic.
Sunset Boulevard in Kisumu employs one full-time staff member and approximately 16 casual laborers, while Golf Hotel in Kakamega, co-owned by Kakamega County Government, employs 47 full-time workers and is valued at Ksh160 million.
Meanwhile, Mombasa Beach Hotel has 150 employees, and Mt Elgon Lodge is categorized as a three-star establishment.
Towards the end of the previous year, Ruto’s Cabinet approved the privatisation of 11 state corporations, including the Kenyatta International Conference Center and the Kenya Pipeline Authority.
At the time, Ruto argued that the government was expending significant resources to sustain their operations, despite the potential for profitability under private management.
