The Privatisation Authority, a state authority, has initiated the process of privatising over four hotels in a bid to catapult them to profitability.
In a notice published in a local daily on Tuesday, March 12, 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.
“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 Cabinet concluded.
KDC, in its Investment Prospectus Report, had explained that the hotels needed a turnaround after dealing with the COVID-19 pandemic.
Sunset Boulevard located in Kisumu has one full-time employee and about 16 casual labourers while Golf Hotel in Kakamega, co-owned by Kakamega County Government, employs 47 full-time employees and is valued at Ksh160 million.
Mombasa Beach Hotel, on the other hand, has 150 employees while Mt Elgon Lodge is ranked as a three-star facility.
Towards the end of last year, Ruto's Cabinet authorised the privatisation 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.
