In a notice of redundancy to staff, the Intercontinental Hotel in Nairobi seeks to wind up its business in Kenya.
“We write to inform you that InterContinental Hotels Corporation Limited Kenya (IHCL) is for operational reasons, considering a permanent closure of InterContinental Nairobi and winding up its operations in the Republic of Kenya. As a consequence of such intended winding up, all employment positions would become redudant,” read part of the notice.
The Hotel is partly owned by the government of Kenya at 38 per cent stake. The controlling stake is owned by the former President Daniel Moi and Joshua Kulei families.
In 45 days, the hotel business will shut down opening a chance for another person to buy it.
Many businesses have suffered under the economic slowdown brought about by the COVID-19 pandemic.
Foe Intercontinental Hotel however, the hotel chain has been under pressure due to huge debts.
In early, 2019, it was reported that the hotel was struggling to service its nearly a billion debt.
As at the end of 2018, the five-star hotel reportedly owed Stanbic Bank more than Sh700 million.
In February, the Privatisation Commission revived the sale of government stake in the hotel through the Tourism Finance Corporation (TFC) following previous unsuccessful offers.
The hotel renowned for hosting business travellers from the world over hosts a poolside restaurant, a coffee shop and a number of bars.
Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]