Tourism and Wildlife Cabinet Secretary Najib Balala said Hotels should not expect to receive a share of the government’s Sh3 billion Covid-19 stimulus package if they are not willing to provide security for the money since it is not free cake.
Speaking at Kenyatta University Balala blamed most of the facilities for expecting that the government was dishing out free cash through the kitty, even as he admits that most of the businesses are recording poor performance.
Mr Balala spoke as most of the hotels continue to face a number of challenges, which have rendered thousands jobless, several facilities closed down, while those in operation are struggling to stay afloat
“They think it is a grant, these are loans. We have given very good incentives for the loans, but it has to be paid. You must provide security for it, this is not a grant and if you think it’s a grant then you are not a serious person who deserves this loan,” the CS said on Thursday at Kenyatta University.
He said of the Sh3 billion the government released to the sector, only Sh1 billion had been given out to various hotels, while the balance remains untouched.
This even as many hotels, particularly those that rely on foreign tourists and travelers, continue to suffer losses due to poor business, with many admitting to be performing at between 15 and 30 percent of their capacity.
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