The government has officially begun the sale of its stake in the five hotels that were earmarked for privatization.
This is after the Privatisation Authority on Tuesday placed a tender inviting consultant to guide the disposal of the Kenya Development Corporation controlled hotels.
Some of the hotels to be sold off include the Kenya Safari Lodges, Mt Elgon Lodge Limited, Golf Hotel Kisumu, Kabarnet Hotel and Sunset Hotel.
“The authority requires transaction advisory services that involve the review of financials, industry analysis, commercial, operational, regulatory and legal for the KDC-controlled hotels,” the tender call read.
The notice by the Authority follows an earlier decision by the Cabinet approving the sale of six state-owned enterprises, including the privatisation of the Development Bank of Kenya.
“The decision (on Development Bank) by our nation’s apex policy-making organ was informed by the fact the Bank had fully transitioned into a fully-fledged depositing taking commercial bank regulated by the Central Bank of Kenya (CBK),” a cabinet dispatch issued in February read.
At the time, the government argued that the move was expected to stimulate the expansion of the country’s hospitality industry and grow the individual units through private sector investment.
“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 added.
The approval came at the backdrop of the initial move taken by the Kenya Kwanza administration to privatise the 11 entities, which includes Kenya Literature Bureau (KLB), Kenyatta International Convention Centre (KICC), Kenya Seed Company Limited, Kenya Pipeline Company (KPC) and New Kenya Co-operative Creameries.
Others are the National Oil Company of Kenya (NOCK), Numerical Machining Complex, Kenya Vehicle Manufacturers Limited, and Rivatex East Africa Limited.
The move has, however, been halted by the High Court, following a case by ODM leader Raila Odinga who argued that the entities were of strategic national interests.
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