The privatization Authority of Kenya (PAK) has invited investors to bid for the government’s stake in the Kenya Hotel Properties Limited (KHPL) which owned the Intercontinental Hotel in Nairobi CBD.
The PAK in an advert on March 28 invited Expressions of Interest (EOIs) from potential investors for the purchase of 33.83% of the government’s shares in KHPL.
Its decision to sell off government-held shares in the hotel company comes as part of broader efforts to streamline state-owned assets and foster private sector participation in key industries.
“In line with the provisions of the Privatisation Act 2023, all relevant laws, regulations, and the constitutive instruments of the Kenya Hotel Properties Limited (KHPL) (the Company), the Government of Kenya, through the Privatization Authority invites Expressions of interest (EOIs) for the acquisition of 33.83% of Government shareholding in KHPL,” PAK said in an advert.
KHPL was incorporated in Kenya in 1988 and owns the property, which was previously managed by the Intercontinental Hotel Group.
The property is located in the Central Business District of Nairobi City, adjacent to the National Parliament building and close to other key government buildings.
Interested bidders may include persons (natural or legal) and or Consortium(s). Furthermore, the bidders must be willing to acquire the entire GOK shareholding.
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How to Bid for the Kenya Hotel Properties Shares
Interested bidders must provide information that meet the following eligibility criteria:
(a) Evidence that the Bidder or, in the case of a Consortium, the Consortium Leader, is legally registered or incorporated. For a Consortium, include a Memorandum of Agreement to bid as a Consortium.
However, in the case of individuals, copies of certified national identification cards or passports for international bidders.
(b) A copy of a valid tax compliance certificate for local bidders and proof of tax remittance certification for international bidders.
Bidders will further have to demonstrate their financial capacity to acquire 33.83% of KHPL’s equity.
Additionally, they will Provide a bid security of Ksh 10 million (or US dollar equivalent at the CBK prevailing exchange rate on the date of EOI Advertisement) issued by a bank recognized by the Central Bank of Kenya or an equivalent and valid for 180 days from the tender opening date.
Also, bidders must provide a reference letter from a bank recognized by the CBK or an equivalent in the country of origin.
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The Privatization Authority will shortlist bidders from the investors who submit EOIs that meet all the criteria set out in this advertisement.
Additional information on the privatization process and the company being privatized can be obtained from the address indicated below or from the Authority’s website https://privatisation.go.ke/.
Submission of Details
Furthermore, interested bidders should submit the Expressions of Interest in a sealed envelope to the address provided below, clearly marked “Expression of Interest-For the Acquisition of GOK shares in-Kenya Hotel Properties Limited”.
The EOIs must be delivered or deposited in the tender box not later than 1100hrs East Africa Time on 18th April 2024.
They will be addressed to the Managing Director Privatisation Authority, Social Security House-Annex, 10th Floor, Bishops Road, Community, P.O. Box 34542-00100, Nairobi.
Subsequently, the EOIs will be opened immediately after the closing time at the Privatisation Authority’s offices in the presence of bidders (or their representatives) who choose to attend.
The Request for Proposals will be issued to shortlisted bidders only.
