The government through the Privatisation Authority has appointed a transaction advisor to guide the process of selling the iconic Intercontinental and Hilton hotel buildings which have been out of service since 2020 and 2022 respectively.
According to reports, Nairobi-based Standard Investment Bank (SIB) will now guide the privatisation of the prime properties at a cost of Ksh10.8 billion.
The sale is part of the government's plan to privatise at least 26 state-owned companies that are either struggling to stay afloat or ceased operations.
Once the sale is complete, the government is expected to generate capital from the once-famous hotels as investors show keen interest in acquiring the valuable assets.
As part of its advisory role, the Standard Investment Bank will also offer advice for a one-year period on the privatisation of the Kenya Development Corporation (KDC). The State holds its stake in Hilton through the KDC.
Once the sale is complete, the government will cease the majority stake in the prime-based properties.
The State holds a 40.57 per cent stake in International Hotels Kenya Limited, owner of Hilton Hotel as well as a 33.8 per cent stake in Kenya Hotel Properties Limited which owns the Intercontinental Hotel.
Hilton Hotel announced its closure in April 2022, after 53 years of operations in the country.
The once-famous hotel thrived on its location as it sits at the heart of Nairobi's Central Business District (CBD).
On the other hand, InterContinental Hotel shut down its doors in August 2020, citing operational reasons. Both hotels closed down after the government, which owns a majority stake, failed to invest funds into the two properties.
This also led to shareholders withdrawing their investments from both hotels.
