Cabinet Greenlights Privatization of 5 Hotels & Bank
On Wednesday, the Cabinet approved the privatization of six State-owned entities, comprising five hotels and one bank.
A dispatch issued following a cabinet session on Wednesday, February 14, indicated that the government intends to sell its stake in the Development Bank of Kenya (DBK).
“The decision by our nation’s apex policy-making organ was informed by the fact the Bank had fully transitioned into a fully-fledged Deposit-taking commercial bank regulated by the Central Bank of Kenya (CBK),” read part of a statement by the Cabinet.
At the same time, the hotels earmarked for privatization encompass all amenities affiliated with Kenya Safari Lodges and Hotels Limited, such as Mombasa Beach Hotel, Ngulia Safari Lodge, and Voi Safari Lodge.
The government is considering privatizing several other hotels, namely Golf Hotel, Sunset Hotel, Mt. Elgon Lodge, and Kabarnet Hotel Limited.
As per the government, the action is anticipated to boost the development of the country’s hospitality sector and enhance individual establishments through investments from the private sector.
The government also highlighted that this decision is in harmony with the current resurgence of the tourism sector, which has been further boosted by the government’s recent initiative to provide Visa-free entry for global citizens.
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In explaining the decision, the Cabinet highlighted that the action was expected to result in higher employment and business prospects, benefiting not only the divested enterprises but also contributing to the overall growth of the tourism sector.
Three months back, the government suggested the possibility of privatizing an additional 11 parastatals. These encompassed entities such as the Kenya Literature Bureau (KLB), Kenyatta International Convention Centre (KICC), National Oil Corporation (NOC), Kenya Seed Company Limited, Mwea Rice Mills, and Western Kenya Rice Mills Limited.
The government has indicated its plans to sell various other companies, such as Kenya Pipeline Company, New Kenya Cooperative Creameries, Kenya Vehicle Manufacturers Limited, Rivatex East Africa Limited, and Numerical Machining Complex.
In an official statement, the government revealed that the decision was prompted by the persistent underwhelming financial results of the corporations.
The government additionally disclosed its intention to divest KLB and the KICC due to the necessity of incorporating these two parastatals into limited companies.
Cabinet Greenlights Privatization of 5 Hotels & Bank
