Tourism agency to set up Sh800m kitty for improving industry
From left: Kenya Tourism Board Chairman Jimi Kariuki, Tourism Cabinet Secretary Najib Balala and his PS Fatuma Hirsi during the launch of Magical Kenya Travel Expo at KICC in Nairobi on October 12, 2016. Tourism Finance Corporation will establish a fund to alleviate the sector. PHOTO | SALATON NJAU | NATION MEDIA GROUP
What you need to know:
- Mr Orumoi said the government’s aim is to provide accommodation for tourists while they are on safari.
- He said part of the funds will be loaned to entrepreneurs to establish an amusement park and an aquarium in Nairobi.
A tourism body has announced a Sh800 million loan kitty to finance construction of lodges in national parks that lack accommodation facilities.
Tourism Finance Corporation (TFC) Managing Director Jonah Orumoi said the agency has raised Sh300 million and the government Sh500 million to be lent to investors.
The loan will be offered by the end of this month and the parks will be mapped out by TFC.
Some of them include Lake Turkana National Park, Kakamega National Reserve and Marsabit National Park.
Speaking to the Nation on phone Sunday, Mr Orumoi said the government’s aim is to provide accommodation for tourists while they are on safari.
“Lack of accommodation and catering services in some of the national parks has greatly inconvenienced tourists coming to the country for game viewing,” he said.
He added: “We want local investors to take advantage of the loans so that they can build facilities in the parks to cater to holidaymakers.”
Mr Orumoi said part of the funds will be loaned to entrepreneurs to establish an amusement park and an aquarium in Nairobi.
Further, he said the Corporation, through the Tourism ministry, has secured Sh10 billion from the government for the formation of a Hotel Refurbishment Revolving Fund, an undertaking that had been announced by Tourism Cabinet Secretary Najib Balala in August.
However, Mr Balala said new hotels will not be eligible since the fund will target old ones.
Nonetheless, Mr Orumoi added that TFC would - from early next year - offer loans to hotel-owners to revamp their establishments.
“The Sh10 billion loan kitty is for supporting product development so that the existing hotels can be upgraded to facilities of international standards,” he said.
So far, he added, TFC has received loan applications of Sh2.6 billion from hoteliers intending to renovate their facilities.
Mr Orumoi encouraged more business owners to take advantage of the incentive.
According to Tourism Regulation Authority (TRA) classification results which were released in August, only three hotels at the Coast were rated as five-star.
TRA boss Lagat Kipkorir urged hoteliers to refurbish their facilities to offer quality services to both local and international holidaymakers.
