Government shuts Utalii Hotel, Kisumu and Mombasa campuses
By Admin - 2020-04-24 06:53:30 - [General]
The government has closed Utalii Hotel and satellite campuses of the Kenya Utalii College in Kisumu and Mombasa.
The Tourism ministry said the hotel "does not generate revenue and yet depletes the institution's resource in covering overhead costs".
Regarding the satellite campuses, Principal Secretary Salina Kwekwe said they were expensive to operate yet lacked enough students to sustain operations.
The college had received September 2020 intake requests.
“The college has been closed until such a time that its board, management and the ministry develop a sustainable and profitable operational plan,” the PS said in a memo on Monday to Kenya Utalii College CEO and Principal Hashim Mohammed.
She said pending programmes at the Kisumu and Mombasa campuses will be completed online.
OTHER CHALLENGES
The memo added that the ministry and the top governing body of the college held a meeting recently on how to transform the institution, during which it was noted that it could no longer generate revenue.
In 2017, Tourism and Wildlife Cabinet Secretary Najib Balala asked the government to help clear a Sh3 billion loan taken by the hotel.
Some Sh140 billion given by the government as a loan for renovations in 1996 has accrued to Sh2.5 billion.
In March, the hotel was turned into one of the designated Covid-19 isolation centres.
Tourism has been hit hard by the pandemic that has seen hotel workers countrywide suspended or made to take indefinite unpaid leave.
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