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Red Cross trains sights on ventures to raise aid funds
Mr Abbas Gullet, KRCS secretary general. Photo/File
The Kenya Red Cross Society (KRCS) will venture into more commercial activities to raise its working capital with surpluses being channelled to humanitarian activities to meet its core mandate.
Secretary-general Abbas Gullet said the society plans to expand its commercial programmes into new fronts such as food security.
“We cannot rely on government and donors. We have to find new revenue streams,” he told guests on Wednesday during the official opening of the Sh2.7 billion Boma Hotel in Nairobi. The facility is owned and run by the society.
The KRCS has for decades depended on disbursements from donors, budget allocations and incentives from the government such as tax reliefs to support its humanitarian work.
“We want to get more into food security projects. We want to get out of handouts and food aid into agricultural sustainability,” Mr Gullet said during the ceremony where President Mwai Kibaki was the chief guest.
The Presidents said profits from the hotel would supplement the society’s income and fund humanitarian activities.
“I encourage other non-profit organisations to develop innovative income generating projects in order to secure financial independence,” said President Kibaki, the society’s patron.
In a bid to boost its resources, KRCS has already made huge investments in the hospitality industry where it runs the Boma chain of hotels which has units in Nairobi, Eldoret and Nyeri.
The society also plans to venture into commercial farming in Tana River where it was recently allocated 3,000 acres of land by the local Madogo Community.
The commercial forays by KRCS have, however, come under criticism by some MPs who took Special Programmes minister Esther Murugi to task on the floor of the House on Tuesday over the society’s ventures.
Wajir South MP Mohamud Sirat termed the income generating activities as “cash cow ventures” citing failure by Ms Murugi to disclose the amount of money the society spent to build four five-star hotels in Nairobi, Nyeri and Eldoret.
Mr Sirat, demanded information on the source of the funds and the amount of money each of the facilities generated annually.
Mr Gullet told the Business Daily Boma Hotel in Nairobi’s South C Estate was financed through KRCS’ savings and a loan from Equity Bank.
“Let me set the record straight that this hotel was built using a $24 million (Sh2 billion) loan from Equity Bank and Kenya Red Cross Society also put in $8million (Sh700 million),” he said.
The official said 3.7 acres land the hotel sits on was also donated to us by the government. The land was previously owned by the Energy ministry.
President Kibaki chided those questioning KRCS venturing into commercial activities, describing the arguments as “foolish”.
“It is a great pity that such remarks were made in Parliament,” President Kibaki said and urged KRCS to take up more business activities.
