This archive report was first published on 13 June 2020.
Kenya on the path to recovery ¶
Published on June 13, 2020, a report by Cytonn Investments highlighted a cautious recovery in Kenya's hospitality sector following the COVID-19 pandemic.
Several high-end hotels, including Villa Rosa Kempinski, Ole Sereni, Hemingways Watamu, Radisson Blu Arboretum, and Trademark Hotel, have announced plans to resume restaurant operations, including dine-in options and home delivery.
Kenya has reported over 3,300 cases of SARS-CoV-2 after testing over 108,600 samples. The government has implemented measures to contain the spread of the virus, including closing down Nairobi and Mombasa, which has affected businesses.
However, in May, the government eased restrictions on restaurants, allowing some to open while adhering to social distancing measures, such as spacing dining tables at least 1.5 meters apart and limiting the number of persons per table to 4 per 10 square meters.
Cytonn expects the hotel reopening, coupled with plans by airlines such as Kenya Airways and Air Tanzania to resume passenger flights, to put hotels back on a slow recovery path, even as social distancing measures and curfews remain in place.
The sector has been boosted by Sh2 billion in loans from the Tourism Finance Corporation (TFC), which are meant to serve as a stimulus package for hotels and other hospitality facilities.
The National Tourism and Hospitality Protocols Taskforce is also developing tourism and hospitality protocols and guidelines in response to the COVID-19 pandemic and to support tourism operations.
One of the biggest deals in the hospitality and real estate sector has been the takeover by Chaudhary Group of the Fairmont the Norfolk and Fairmont Mara Safari Club from Saudi Billionaire Prince Al-Waleed bin Talal for Sh2.8 billion.
Cytonn sees this as Kenya's attractiveness to high-net-worth global investors keen on tapping into the vibrant sector of top-notch hospitality facilities.
“We expect the sector to continue recording activities as the economy cautiously reopens following the COVID-19 closures, coupled with improved infrastructure, foreign investments, and continued government efforts to cushion businesses,” Cytonn said.
