The Presbyterian Church of East Africa (PCEA) risks losing its Ksh1.7 billion hotel if it fails to pay a loan of Ksh761 million from a local bank.
PCEA Secretary-General, Rev Peter Kaniah, on March 5, dispatched letters to the 56 presbyteries across the country calling on them to come to the aid of one of their real estate projects, the Milele Luxury Apartments at the Milele Beach Hotel in Mombasa.
According to Nation, the plan is to divide the debt and give each of the parishes a target.
“All the parishes shall share Ksh13 million per month for a period of two years during which the head office shall complete construction of the houses and sell them to clear the Ksh761 million (debt),” he wrote.
“Presbytery clerks are also directed to ensure that the evangelists and staff support the venture with their tithes for two years,” he added.
Parishes will be expected to make their contributions through standing orders, which have to be banked as from the fifth day of each month.
The money raised will not only offset the loan but will be used to finish construction of an apartment block of 64 units next to the hotel which has stalled due to lack of funds.
All funds invested by the parishes over the two years will be converted into shares and will earn annual dividends thereafter from the hotel returns.
According to the letter, parishes and presbyteries that are able to quickly raise Ksh20 million shall be given one apartment, that is likely to raise between Sh300,000 and Sh350,000 a month at 70 per cent occupancy.
The church bought the hotel, formerly known as Giriama Beach Hotel, in August 2007 from the late Eliud Mahihu who was the Coast Provincial Commissioner in the government of President Jomo Kenyatta.
Widespread violence that rocked the country following the disputed presidential results of the 2007 general elections severely affected the tourism sector and may have led to the troubles facing the hotel.
