Covid-19 Hit Kenyan Hotels To Share 3Billion Shillings As Bail Out

By Nsunjo Erica

Kenya’s Tourism Finance Corporation (TFC) is set to release a relief package of 3 Billion shillings to the hardest COVID-19 hit hotels as a boost to the tourism and hospitality industry.

According to TFC Director Jonah Orumoi, the relief package will be disbursed from early next month to hotels and lodges to share accordingly.

Dr. Keziah Odemba, Director Ministry of Tourism said with the stimulus package, the hotel will be able to offer discounts to their guests and encourage comebacks.

Since Kenya’s 1^st COVID-19 case on March 13, the country’s tourism sector saw the closure of various hotels and massive layoffs of thousands of employees after hotels lost billions following the closure of airports and other restrictions.

Following President Uhuru’s easing of restriction in July, the government is now embarking on the Sh3 billion relief package to help the Tourism sector’s recovery.

“The government is committed to reviving the hospitality industry. Most hotels have since shut down and require a boost to turnaround. The industry must embrace restructuring and embrace domestic tourism,” said Mr. Orumoi who met different hospitality industry stakeholders during a tour.

TFC Director Jonah Orumoi added that the corporation was working on a plan to extend the package to tourism-related small business enterprises.

Director Ministry of Tourism Dr. Keziah Odemba also said the government was eying boosting tourism by adding more emphasis to domestic tourism as to economy continues to open and stabilize.

Earlier last month, Tourism Cabinet Secretary Najib Balala issued a clarification on the ban on alcohol, saying hotels can only sell alcoholic drinks to clients in their private rooms and not in a public space.

Tourism Cabinet Secretary Najib Balala also said the hotels ravaged by the coronavirus crisis will access cheap loans at an interest rate between five to seven percent under a 10 Billion shillings state-backed credit scheme.

According to CS Najib Balala, the scheme will offer affordable credit to hotels and firms operating in the tourism sector especially small and medium enterprises (SMEs).