Tuesday, April 16, 2024

State to sell shares in prime hotels, lodges

# According to a statement from the Executive Office of the President, the move is expected to help with the growth of the hospitality sector in the country. # It said that this will also help in the creation of jobs in the country.

The Cabinet has approved the sale of shares in at least Seven state-owned hotels and lodges.

The move follows Wednesday’s Cabinet meeting that was chaired by President William Ruto.

According to a statement from the Executive Office of the President, the move is expected to help with the growth of the hospitality sector in the country.

It said that this will also help in the creation of jobs in the country.

“These divestures are expected to stimulate the expansion of our nation’s hospitality industry and grow the individual units through private sector investment.”

KICC, National Oil among 11 parastatals to be sold to private investors

“This move aligns with the ongoing rebound of the tourism sector that has been buoyed by the Visa-Free entry regime in Kenya, and promises to deliver increased employment and business opportunities in both the divested enterprises as well as across the entire tourism sector,” the dispatch reads in part.

The affected hotels and lodges include; Mombasa Beach Hotel, Ngulia Safari Lodge, and Voi Safari Lodge, all operating under Kenya Safari Lodges and Hotels Limited, Golf Hotel Limited, Sunset Hotel Limited, Mt. Elgon Lodge Limited, and Kabarnet Hotel Limited.

During the Cabinet meeting, the state also approved the privatisation of the Development Bank of Kenya.

“The decision by our nation’s apex policy-making organ was informed by the fact the Bank had fully transitioned into a fully-fledged Deposit-taking commercial bank regulated by the Central Bank of Kenya (CBK).”

Privatisation is one of the measures the William Ruto-led administration is banking on to turn the country’s fortunes around.

Some of the targeted institutions include state-owned parastatals.

The National Treasury announced in November 2023 plans to sell 11 parastatals to free up cash pumped into their operations.

They include the iconic Kenyatta International Convention Centre (KICC), Kenya Literature Bureau, National Oil Corporation, Kenya Seed Company Limited, Mwea Rice Mills, Western Kenya Rice Mills Limited, Kenya Pipeline Company and New Kenya Cooperative Creameries.

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