Cabinet Approves Sale of Govt-Owned Bank, Five Hotels

Members of the cabinet have approved the privatization of the Development Bank of Kenya. 

According to a statement from State House, members of the cabinet in a meeting held at State House Nairobi, agreed to sell the bank in a move aimed at unlocking its potential.

State House noted that the bank had transitioned into a fully-fledged deposit taking commercial bank regulated by the Central Bank of Kenya and hence the idea to commercialize it.

The move, according to the cabinet, will ensure that members of the public get the best value from the bank.

In addition, Cabinet members agreed to privatize five state-owned hotels deemed to be non-strategic. 

The five namely the Kenya Safari Lodges and Hotels Limited (incorporating Mombasa Beach Hotel, Ngulia Safari Lodge, and Voi Safari Lodge), Golf Hotel Limited, Sunset Hotel Limited, Mt. Elgon Lodge Limited and Kabarnet Hotel Limited will be sold in attempts to boost Kenya’s hospitality sector. 

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“These divestures are expected to stimulate the expansion of our nation’s hospitality industry and grow the individual units through private sector investment,” the statement read in part.

“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.”

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The approval came months after a similar move to privatize corporations including the Kenyatta International Convention Center (KICC) and 10 other parastatals.

In the notice published on November 27, the National Treasury also listed the National Oil Corporation of Kenya, Kenya Seed Company, Mwea Rice Mills, Kenya Vehicle Manufacturing, and Rivatex East Africa Limited for privatization.

The government maintained that privatization of the named corporations would help to enhance their economic value to the country and a way of revamping various sectors such as hospitality.

However, members of the opposition voiced their concerns about the motive of the privatization drive.