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Kenya's Government Offers Relief to Struggling Hospitality Sector

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 14 June 2020.

On June 14, 2020, the Kenyan government announced a series of measures to support the struggling hospitality sector, which has been severely impacted by the COVID-19 pandemic.

As part of these efforts, the government has temporarily lifted the ban on meetings held in private hotels, aiming to promote tourism and support the hospitality sector.

Additionally, the government has waived landing and parking fees at Kenyan airports to enhance the movement of cargo in and out of the country.

According to Treasury CS Ukur Yatani, tourism is one of the hardest-hit sectors in the economy, with massive cancellations of hotel bookings resulting in increased job and income loss.

Plans are underway for the government to provide hotel refurbishment through soft loans to be channelled via the Tourism Finance Corporation. The Tourism Promotion Fund was allocated KSh2.5 billion in the 2020/21 budget.

President Uhuru Kenyatta announced a KSh2 billion stimulus package for the hospitality sector during this year's Madaraka Day Celebrations, aiming to cushion the industry from the negative impacts of the pandemic.

Several hotels, including Fairmont, Serena, and Kempinski, have been affected by the pandemic, with some announcing closures and redundancies. Fairmont closed its Norfolk and Mara Safari Club hotels and fired all employees due to the pandemic, while Serena temporarily closed some of its establishments and directed staff to take unpaid leave until further notice.

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