This archive report was first published on 8 June 2020.
Published on June 8, 2020, investors in the hospitality sector are facing financial challenges due to the Covid-19 pandemic.
Hotel developers around the Rift Valley lakes, including Nakuru, Naivasha, Elementaita, Baringo, and Bogoria, are seeking lower interest rates on loans from the Tourism Finance Corporation (TFC).
The Rift Valley Lakes Tourism Association, a lobby group representing the investors, is appealing to TFC to reduce the interest rate from 11% to 7% annually.
According to Joseph Muya, the association's spokesperson, the current interest rate is too high and does not reflect the economic realities of the pandemic.
"Most of our clients are international tourists whose visits were cancelled when the Kenyan airspace was closed. Conferences and meetings were cancelled or postponed leaving us financially grounded," Muya said.
The association is also calling for a friendlier formula for repayment of previous loans, including extending the loan repayment period or giving a longer grace period.
Tourism Cabinet Secretary Najib Balala has announced that the Sh5.6 billion stimulus package will be extended to hotels, airlines, and tour guide companies to aid them in restructuring their operations and renovating their facilities.
