Nyali Beach ‘changes hands’

Mombasa’s Nyali Beach Hotel is claimed to have changed hands on Wednesday night in an unexpected turn of events that could have ended more than five years of Kenya Commercial Bank receivership. The hotel has now been renamed Nyali International Beach Hotel, complete with a new logo.

But sources close to operations of tycoon Ketan Somaia, who claims ownership of the hotel, dismissed the claim yesterday: “It is just one of those charades between Mr Somaia and Mr Kamlesh Patni. It is just a temporary thing.” The source, who did not want his identity divulged in the controversial matter, said the hotel still owes KCB a “lot of money” and it is unlikely the receivership of the oldest African beach hotel in Kenya had been lifted.

The hotel was placed in receivership over a Sh400 million debt. Mr Somaia, who was extradited to the UK to answer fraud charges, has been battling equally controversial Mr Pattni over the shareholding of this and other properties, including the Naivasha Country Club, The International Casino and Marshalls East Africa — whose annual general meeting has been put in abeyance due to the tussle. Marshalls managing director Ngovi Kitau quit early this year, reportedly in disgust over the constant rows.

The company which previously offered security at the hotel has also been changed. TSS Security company has been replaced by Texas Security guards. A CEO’s representative at the hotel said that Nyali International Beach Hotel had taken over Nyali Beach Hotel. “I can confirm that we have taken over the hotel and are carrying out renovations in order to bring it to international standards,” he said.

The hotel had been in receivership for nearly six years since 2003. Details of how the hotel was reportedly bought by an investor were scanty since managers at the hotel declined to be interviewed over the matter. An excited staff member said: “We are now under new management and happy that we will retain our jobs.”

He said the KCB receiver managers left the hotel on Thursday. “Renovations are being carried out as we await the big day (the re-launch of the new hotel). New managers are coming in one-by-one and we expect more,” the employee added. Mr Somaia is held up in the UK over allegations of siphoning 400,000 pounds belonging to a firm named Hemini PLC; for allegedly dishonestly transferring 400,000 pounds by purporting that he was entitled to sell shares of Delphis Bank (Mauritius); and for allegedly stealing 100,000 pounds on April 16, 2002 from Hemini PLC.

The UK Government had, through Interpol, issued a notice for Somaia on the basis of which he was detained in Mumbai on December 18, 2008. The UK Government had sought Mr Somaia’s extradition since then, but he complained of health problems and was first admitted at a heart care hospital in BKC and later at a private hospital in Juhu, where he remained admitted until his extradition.