Wednesday, March 13, 2024 – The Government of President William Ruto has begun the process of selling off government hotels in a bid to reduce the burden on taxpayers.
Ruto, through the Privatisation Authority, a state authority, initiated the process of privatising over four hotels in a bid to catapult them to profitability.
In a notice published yesterday, the authority advertised procurement services from suitably qualified individuals to provide transaction advisory services during the sale process.
Additionally, it clarified that the hotels targeted for privatisation are currently under the control 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," read the notice in part.
The authority first floated the idea of privatising the hotels earlier this year which was approved by President William Ruto-led Cabinet meeting at State House.
The hotels included Golf Hotel Limited, Sunset Hotel Limited, Mt Elgon Lodge Limited, and Kabarnet Hotel Limited.
Others were Mombasa Beach Hotel, Ngulia Safari Lodge, and Voi Safari Lodge which are attached to Kenya Safari Lodges and Hotels Limited.
KDC, in its Investment Prospectus Report, had explained that the hotels needed a turnaround after dealing with the COVID-19 pandemic.
Towards the end of last year, Ruto's Cabinet authorized the privatization of 11 State Corporations including Kenyatta International Conference Center and Kenya Pipeline Authority.
Ruto, at the time, argued that the government was spending billions of shillings sustaining their operations yet the companies stood a profitability chance under private management.
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