Hotels in the Kenya’s coast region which were worst ravaged by the coronavirus crisis will take the lion’s share of a Sh3 billion State- backed Covid recovery fund with establishments in the rest of the country sharing out the rest, the government now says.
Hotels ravaged by the coronavirus crisis will under the scheme access cheap loans at interest rate of five percent and upto Sh50 million each under the State-backed credit scheme, the Tourism Finance Corporation (TFC) announced Monday.
“The 60 percent of the Fund was allocated to the Coast Region – Beach destination while the remaining 40 percent was allocated to the other regions in the country,” said TFC Managing Director Orumoi Jonah yesterday in a statement as roll out of the recovery fund began.
“The disbursement process is ongoing and TFC is working together with the Ministry of Tourism and Wildlife and Ministry of lands to ensure securitisation is hastened,” said Mr Orumoi.
A hundred hotel establishments have already applied for the loans that will run for 10 years, with borrowers expected to start repaying the debt after two years, revealed the TFC boss.
“Successful borrowers have already started receiving their Stimulus payments and some Industry Players that have drawn the Stimulus funds are from Meru, Trans Nzoia, Uasin Gishu, Kilifi, Mombasa, Kitui and Kisumu among others,” he said
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