Intercontinental hotel could be auctioned over debt
The renowned 5 star hotel located at the heart of Nairobi, Intercontinental Hotel, could be auctioned due to running broke.
It is said that by close of the calendar year, 2018, the hotel was indebted by Ksh 700 million.
Creditors are more than ready to auction the 389-bed hotel so as to recover their debt.
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A letter dated February 7, 2019 written by Mr Jonah Orumoi, the Chief Executive of Tourism Finance Corporation (TFC) to Privatisation Commission counterpart Joseph Kosgey depicts a sad state for the hotel. Mr. Orumoi states that the company owning Intercontinental Hotel is in a financial crisis and thus can’t meet its financial obligations.
It is said that the company is technically insolvent as it can’t pay its debts owed to Stanbic Bank.
In the last decade, the company has made no profits at all. Its liabilities exceed its income.