Authority kickstarts sale of State-owned hotels
The Privatisation Authority has initiated the process of privatizing over four hotels recently approved by the Cabinet. In an announcement in the dailies on Tuesday, March 12, the authority called for qualified individuals to provide transaction advisory services for the planned sale.
Earlier, the Cabinet approved the Authority’s proposal to privatize Golf Hotel Limited, Sunset Hotel Limited, Mt Elgon Lodge Limited, and Kabarnet Hotel Limited, all under the Kenya Development Corporation (KDC).
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Additionally, Mombasa Beach Hotel, Ngulia Safari Lodge, and Voi Safari Lodge, affiliated with Kenya Safari Lodges and Hotels Limited, are also slated for sale.
The move comes as Kenya’s tourism experiences a resurgence, partly due to eased regulations on Visa issuance, promising increased employment and business opportunities in both the divested enterprises and the broader tourism sector.
The Cabinet noted that privatization is a positive step, considering the tourism sector’s recovery following the challenges posed by the COVID-19 pandemic. It also cited the government’s rising spending to sustain the target hotels’ operations, stating that private management offered a more profitable avenue for these businesses.
