The government has appointed a transaction advisor to guide the sale of the iconic Intercontinental and Hilton hotel buildings, which have been out of service since 2020 and 2022, respectively.
According to reports, the Nairobi-based Standard Investment Bank (SIB) will now oversee the privatisation of the prime properties, which will cost Ksh10.8 billion.
The sale is part of the government’s plan to privatise at least 26 state-owned enterprises that are either struggling or have ceased operations.
The government is expected to generate capital from the once-famous hotels once the sale is completed, as investors show keen interest in acquiring the valuable assets.
The government owns 40.57 percent of International Hotels Kenya Limited, which owns the Hilton Hotel, and 33.8 percent of Kenya Hotel Properties Limited, which owns the Intercontinental Hotel.
After 53 years of operation in the country, Hilton Hotel announced its closure in April 2022.
The once-famous hotel thrived due to its central location in Nairobi’s Central Business District (CBD).
The InterContinental Hotel, on the other hand, closed its doors in August 2020 for operational reasons. Both hotels closed after the government, which owns a majority stake, failed to invest funds in the two properties.
This also resulted in shareholders withdrawing their investments in both hotels.
