CS Balala suspends firm’s projects
The Tourism ministry has frozen all projects being undertaken by one of its parastatals.
Tourism Cabinet Secretary Najib Balala said the Tourism Finance Corporation (TFC) should stop its activities as the Cabinet had decided to merge three financial institutions to form the Development Bank of Kenya.
“This is to notify you that the Cabinet approved the merger of development financial institutions to form the Kenya Development Bank. This puts the TFC in a transition mode,” said Mr Balala said in a letter to the corporation.
TFC, Industrial and Commercial Development Corporation and IDB Capital Limited are to merge to form the new bank.
“The purpose of this letter is therefore to direct that unless an express authority is given in writing by my office, TFC stops actions on the implementation of all investment projects, including the proposed convention centres and offers for leasing or management of investment,” said the letter addressed to TFC Managing Director Jonah Orumoi.
The directive means that the Government will once more put on hold the process of selling its stake in tourist hotels in several parts of the country.
Last month, the State sought to dispose of its shareholdings in hotels including Intercontinental and Hilton in Nairobi and the Mombasa Beach Hotel.
Others up for sale include Kisumu’s Sunset Hotel, Kakamega’s Golf Hotel, Baringo’s Karbanet Hotel, Mt Elgon Lodge in Trans Nzoia, and Mountain Lodge and Ark Hotel in Nyeri.