The government has unveiled plans to refurbish the iconic Utalii Hotel, marking a long-awaited revival of the prestigious facility that has suffered years of neglect and economic challenges.
Tourism and Wildlife Cabinet Secretary Rebecca Miano announced that funds have already been set aside for the project, with work scheduled to commence immediately, while also confirming the construction of a new hostel under the government’s housing initiative.
“The government has reflected on this matter over time, and I am here today to announce that we have set aside funds to refurbish the Utalii Hotel. The work will commence immediately,” said Miano during the 49th graduation ceremony at Kenya Utalii College.
Miano added that the refurbishment will elevate the hotel to globally accepted standards, transforming it into a model institution.
“Utalii will be upgraded to meet globally accepted standards. We will transform this institution into what it is meant to be. I am convinced that nothing should stop Utalii from becoming Africa’s undisputed Centre of Excellence in hospitality training,” she said.
The announcement coincided with the commissioning of a new ultra-modern Individual Training Kitchen at the college, designed to enhance practical learning for students and strengthen the institution’s role in professional hospitality education.
The Utalii Hotel was closed indefinitely in 2020 after being deemed economically unviable, with the institution unable to generate sufficient revenue to cover high operational costs.
Tourism Principal Secretary at the time, Safina Kwekwe Tsungu, noted in an April 2020 letter that the hotel had become a liability, draining resources while failing to sustain operations.
“Following submissions made by your office, it was noted that it is not viable for the institution to operate the Kenya Utalii Hotel as it does not generate revenue and yet depletes the institution’s resources in covering overhead costs,” Tsungu wrote to the college principal.
The closure followed repeated warnings from the Auditor General, who had consistently flagged the financial unsustainability of the hotel and its satellite campuses.
In 2017, then Auditor General Edward Ouko reported that the college posted a loss of Sh410.5 million and described it as “technically insolvent,” with continued operations dependent on government support and creditors.
The audit also noted non-compliance with a government loan agreement for Ksh 140 million provided in 1996 to refurbish the hotel; by June 2017, only Sh13 million had been repaid, while accumulated interest had risen to Ksh 2.9 billion.
“Although the previous year’s financial statements indicated that the college had entered negotiations with the government to have the loan and accumulated interest written off, no meaningful progress had been recorded,” Ouko stated in a 2018 report, warning that operations could grind to a halt without intervention.
The refurbishment plan signals a decisive effort to restore the hotel to its former prominence while reinforcing the college’s mission as a leading hub for hospitality training in Africa.
Miano’s announcement aligns with ongoing reforms at Kenya Utalii College, which have seen investments in modern teaching facilities and practical training tools.
The government’s commitment to reviving Utalii Hotel also reflects a strategy to strengthen Kenya’s hospitality sector by providing world-class training infrastructure and accommodation for students and visiting professionals.
With the project underway, the Utalii Hotel is set to reclaim its position as a cornerstone of hospitality education and a symbol of professional excellence in the region, bridging historical prestige with modern operational and financial sustainability.
Analysts note that the success of the refurbishment will depend on careful management, adherence to global standards, and alignment with the college’s academic and practical training objectives, ensuring that the facility contributes both to education and economic value in Kenya’s tourism and hospitality sector.
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