InterContinental Hotel Nairobi is broke. The hotel is owned by Tourism Finance Corporation and Intercontinental Hotels Corporation Limited with a 33.83 percent share each.
The hotel has had to close the entire second floor since the rooms there are in un-serviceable state and in need of major repairs.
The Kenya Hotel Properties is technically insolvent since it cannot service its debts that stood at Sh717 million at the end of last year. The debt is owed to Stanbic Bank.
The Chief Executive Officer of the Tourism Finance Board, Mr Jonah Orumoi, wrote a letter to Joseph Kosgey, head of the Privatisation Commission to lift the lid on the sorry state of affairs of the top hotels.
“We wish to bring to your attention the following facts,” Mr Orumoi wrote to Mr Kosgey, whose Privatisation Commission is mandated to sell government assets. “The company (KHP) is facing financial challenges to the extent that it cannot meet its obligations as they fall due.”
“KHP is not able to service its long term facilities as they fall due which have attracted huge accrued interest and penalties,” Mr Orumoi said