The Kenyan government, operating through the Privatisation Authority, has taken significant steps in selling the renowned Intercontinental and Hilton hotel buildings, which have remained inactive since 2020 and 2022, respectively.

In line with these efforts, Nairobi-based Standard Investment Bank (SIB) has been appointed as the transaction advisor to oversee the privatization of these prime properties, with the transaction value set at Ksh 10.8 billion.

This move forms part of the government's broader strategy to privatize approximately 26 state-owned entities that are grappling with financial challenges or have suspended their operations.

Upon the successful completion of this sale, the government anticipates injecting much-needed capital into these once-famous hotels, with investors expressing keen interest in acquiring these valuable assets.

Standard Investment Bank, in its advisory role, will also provide guidance for a period of one year regarding the privatization of the Kenya Development Corporation (KDC), in which the State holds its stake in Hilton.

Subsequent to the conclusion of the sale, the government will relinquish its majority ownership in these prime properties.

The government currently holds a 40.57% stake in International Hotels Kenya Limited, the owner of Hilton Hotel, as well as a 33.8% stake in Kenya Hotel Properties Limited, which is the proprietor of the Intercontinental Hotel.

Hilton Hotel, which had been in operation for 53 years in Kenya, declared its closure in April 2022. The hotel's prime location in the heart of Nairobi's Central Business District (CBD) had long been a key attraction.

Conversely, the Intercontinental Hotel shuttered its doors in August 2020, citing operational challenges. The closure of both hotels was directly linked to the government's inability to infuse necessary funds into these properties, resulting in shareholders withdrawing their investments from both establishments.