This archive report was first published on 22 April 2020.
As the COVID-19 pandemic continues to ravage the country, hotel and club owners are facing a new challenge: landlords who are still demanding rent despite the shutdown of their businesses.
Benson Munuve, a hotelier-turned-farmer, is one such owner who has been forced to close his three nightclubs due to the pandemic. His clubs, which used to earn him approximately Sh4 million in a month, are now cashing out, and he is struggling to pay the overhead costs, including rent, repairs, water, and electricity, which add up to Sh150,000.
Landlords have been a thorn in the flesh for Munuve, refusing to negotiate a payment plan despite the natural calamity that has befallen the industry. Some real estate developers, however, have shown compassion, waiving 30 per cent of rent for their tenants.
The government's decision to shut down hotels, pubs, and nightclubs has had a devastating impact on the hospitality industry, which employs close to 100,000 people and is worth over Sh66 billion. Dominic Machira, an assistant manager at Heritage Hotels, is one of the many employees who are struggling to make ends meet, with his landlord demanding payment of the March rent despite the hotel's shutdown.
As the pandemic continues to spread, the uncertainty is taking a toll on the industry, with many owners wondering how they will pay their rent and overhead costs in the coming months. The government's allocation of Sh2 billion for the revival of the industry is a welcome relief, but many fear that it may not reach the thousands of small businesses like Munuve's that do not have powerful lobby groups.
Published on April 22, 2020
