Most of the government hotels managed by the Kenya Tourist Development Corporation (KTDC) have been run down over the years and continue to struggle financially, prompting the government to restructure them through sale to investors.
Kenya plans to sell its stake in 11 hotels, among them the Intercontinental and Hilton Hotels, some of Kenya’s most profitable hotels and part of Nairobi’s architectural landmarks through strategic partnerships or share issues.
Investors in East Africa are keen on a fresh opportunity to invest millions of dollars in the privatisation of these fine Kenya hotels in the coming months, as the country seeks to reduce its ballooning domestic debt.
News of impending sale of the hotels is said to have excited the market and enquiries from major hospitality management companies and private investors are keen to cash in on Kenya’s attractiveness as a major tour destination.
Foreign and domestic investors have deepened their presence in the hospitality industry with the construction of several hotels.
A number of lodges have also been built in the national parks and game reserves.
The sale is part of a larger privatisation plan that will affect at least 26 enterprises the government is seeking to divest in a Ksh8 billion ($102.7 million) round.
The proposal to dispose of the ownership to investors was approved by Cabinet last year. The government is now said to be finalising the plans.
In the divestiture plan, hotels up for grab include Ark Ltd, Golf Hotel, International Hotels which owns Hilton Hotel, Kabarnet Hotel, Kenya Hotels Properties, Mountain Lodge, Mt. Elgon Lodge, and Sunset Hotel will be up for grabs.
The plan is also hoped to help the country spruce up its tourism sector, which is one of its leading hard currency earner.
