State agency set aside USD 8million loan kitty for hoteliers to renovate their facilities

The loans would be relatively affordable to pay back since it is favorably priced at nine per cent unlike the normal market rate of 14 per cent.

 

The loan facility will go a long way in helping the hotel industry which has been battered by insecurity cases which saw some western countries issue travel advisories further recover, TFC said.

The state-owned agency added their loans would be relatively affordable to pay back since it is favorably priced at nine per cent unlike the normal market rate of 14 per cent.

“We will start lending in the current month. We want to support the industry again but we will be looking at innovative and eco-friendly projects in the industry,” managing director Jonah Orumoi said yesterday.

Orumoi was speaking at the sidelines of a signing of a deal which TFC entered with the UN-Habitat to promote energy and resource efficiency in the hospitality industry.

Lack of the kitty at the government’s main financial support organisation for the tourism industry had left hoteliers with no option but seek commercial banks loans which charged exorbitant rates, prior to the capping of the rates.

This coupled with low earnings as a result of the tourism peak and off-peak seasons saw many hoteliers close business because of the limited resources available to renovate facilities.

In 2014, at least 30 hotels closed down at the Coast alone with international arrivals dipping to 861,758 from 1.09 million in 2013 and 1.23 million arrivals in 2012 according to Kenya Tourists Board data.

Kenyan tourist sector has been on a slum since 2013 due to insecurity concerns, however incentives plus government aggressive marketing campaign has seen Kenya’s second largest foreign exchange earner start to recover.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Top 10 happiest countries in Africa in 2022

Top 10 happiest countries in Africa in 2022

9 most expensive African countries to rent a one bedroom apartment, based on property price to income ratio

9 most expensive African countries to rent a one bedroom apartment, based on property price to income ratio

Here are the top 10 cities in Africa where the most rich people live

Here are the top 10 cities in Africa where the most rich people live

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

These 6 countries have the highest unemployment rates in Africa

These 6 countries have the highest unemployment rates in Africa

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job