Treasury gets nod to sell stake in Hilton, InterCon hotels
The Hilton Group of Hotels already owns 59.42 per cent of the Hilton Hotel through International Hotels Limited, while KTDC owns the rest. Photo/File
What you need to know:
Finance minister Njeru Githae said the move would now allow technical committees dealing with the planned privatisation to proceed with negotiations for the sale.
Parliament has cleared the way for the Treasury to dispose off shares in the Hilton and InterContinental hotels in Nairobi.
The House approved the report of the Finance, Trade and Planning Committee, which gives the Hilton Group of Hotels, InterContinental Hotels Corporation and other shareholders in the establishments’, priority in buying the shares being offloaded by the Kenya Tourist Development Corporation (KTDC).
The approval of the report also paves way for the sale of 26 per cent of the Kenya Wine Agencies Ltd (Kwal) by the Industrial and Commercial Development Corporation to Kwal’s South African partner Distell Limited.
Finance minister Njeru Githae said the move would now allow technical committees dealing with the planned privatisation to proceed with negotiations for the sale.
“South African partners Distell have been threatening to stop supporting Kwal because of the delay in the privatisation process. Now it is possible for them to get the shares they have been asking for,” Mr Githae said.
The South African firm, which accounts for up to 60 per cent of Kwal’s revenues, recently withdrew a notice seeking to sever links with the Kenyan firm over continued delays in privatisation.
The government, through the Industrial and Commercial Development Corporation (ICDC), owns 72.6 per cent of Kwal, while Centum Investment Company owns 26.4 per cent. Other investors hold 0.9 per cent.
The Cabinet approved the sale of KTDC’s shareholding in Hilton Hotel (40.57 per cent), InterContinental Hotel (33.83 per cent) and Mountain Lodge Limited (39.1 per cent) in August last year.
The Hilton Group of Hotels already owns 59.42 per cent of the Hilton Hotel through International Hotels Limited, while KTDC owns the rest.
A sale through pre-emptive rights would see the company take complete control of the hotel valued at Sh1 billion as at June 30, 2009.
Intercontinental Hotels Corporation Limited and KTDC each own 33.83 per cent of Kenya Hotel Properties Limited, the holding company that owns Hotel InterContinental.
KTDC owns 39.1 per cent of Mountain Lodge Limited followed by TPS Serena at 29.91 per cent.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
