Cabinet approves privatisation of Development Bank of Kenya, five State hotels

The Cabinet has approved the privatisation of major State-owned enterprises in the hospitality and tourism department in a move meant to grow the country’s foreign exchange.

At a meeting chaired by President William Ruto at State House on Wednesday morning, the Executive arm of government agreed to privatise – among others - the Development Bank of Kenya (DBK).

“The decision by our nation’s apex policy-making organ was informed by the fact the Bank had fully transitioned into a fully-fledged depositing-taking commercial bank regulated by the Central Bank of Kenya (CBK),” read the Cabinet despatch.

In the hospitality sector, the Cabinet gave the green light for the privatization of the Kenya Safari Lodges and Hotels Limited which incorporates the Mombasa Beach Hotel, Ngulia Safari Lodge, and Voi Safari Lodge.

Others were the; Golf Hotel Limited, Sunset Hotel Limited, Mt. Elgon Lodge Limited, and the Kabarnet Hotel Limited.

The Cabinet meeting defended the decision arguing that it would align with the recent move to make Kenya a Visa-free country with a long-term vision of growing the economy.

“These divestures are expected to stimulate the expansion of our nation's hospitality industry and grow the individual units through private sector investment,” stated the despatch.

“This move aligns with the ongoing rebound of the tourism sector that has been buoyed by the Visa-free entry regime in Kenya, and promises to deliver increased employment and business opportunities in both the divested enterprises as well as across the entire tourism sector.”

In November last year, the government proposed over 10 parastatals marked for privatisation, a move that caused a public uproar.

Those on the list then were the Kenyatta International Convention Centre (KICC), the Kenya Pipeline Company (KPC) and the New Kenya Cooperative Creameries (KCC), the Kenya Literature Bureau (KLB), the National Oil Corporation of Kenya (NOCK), Kenya Seed Company Limited (KSC) and Mwea Rice Mills Ltd (MRM).

Others includes; Western Kenya Rice Mills Ltd (WKRM), Numerical Machining Complex Limited (NMC), 35% of Vehicle Manufacturers Limited (KVM) and Rivatex East Africa Limited (REAL).