This archive report was first published on 9 June 2020.
On June 9, 2020, the Tourism Finance Corporation (TFC) announced it had initiated talks with local banks to ensure the Sh2 billion tourism stimulus package reaches hotel operators.
The talks were aimed at enabling hotels, tour operators, and airlines to access the funds to refurbish establishments and meet operational costs as they move towards full recovery.
TFC Managing Director Jonah Orumoi stated that the agency wanted to avoid a scenario where banks use the money disbursed by the government to recover their loans, denying tourism stakeholders the much-needed funds.
Speaking in Nairobi, Mr. Orumoi said the board was reviewing the criteria for disbursing the stimulus cash, which would include scrutiny of an establishment's contribution to tourism development levy, payment of taxes, and the number of employees.
He added that each pact would see TFC, banks, and an individual lender agree on a restructuring package before the money is released to them.
The stimulus cash will be used to renovate facilities in line with Covid-19 laid-down regulations, including spacing out sitting areas, installation of automated doors, and re-training of staff on procedures of observing high standards of hygiene.
At the same time, the TFC urged devolved units to incentivize tourism facilities within their counties as a way of keeping them open.
