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.
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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.
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