There is pressure building in Kenya across the political divide over the admittance by Finance Minister last Friday that the government sold the Grand Regency Hotel in a government-to-government deal with Libya that was too “sweet” to pass up.
The government through Kimunya’s statement claims the hotel was sold for Kshs 2.9 billion but the Lands Minister, James Orengo, who leaked information that forced Kimunya to come out and admit this deal claims the hotel was sold for Kshs 2 billion. There is widely held belief that the hotel is worth much more than that.
The history of the Grand Regency hotel reads like a chapter in the history of corruption in Kenya. It was built in 1994 by a Kenyan businessman of Indian origin, Kamlesh Pattni, with money sourced from another corruption case known as the Goldenberg scandal.
Pattni relinquished the hotel back to the government of Kenya on April 9, 2008 in exchange for immunity from prosecution and within days rumors quickly spread that the government had sold it to the Libyan government in a secret deal.
The hotel was valued at Kshs 2.5 billion in 1993 so it is not clear what is “sweet” about selling it 15 years later at the same price in a city where the property market is among the most vibrant in Africa. Nairobi Metropolitan minister Mutula Kilonzo said, “The price is laughable. It cannot meet the cost of soft furnishing alone.”
The least Kenyans should accept is nothing less than cancellation of this shady transaction and resignation of all those involved in this deal given the fact that nobody ever goes to jail for crimes committed at this level.
UPDATE: June 30, 2008 11:20PM – Protests scheduled for tomorrow
UPDATE: July 01, 2008 01:21PM – Kenyans protest
Filed under: Business News | Tagged: amos kimunya, grand regency hotel, kamlesh patni, kamlesh pattni, kenya, nairobi, patni, pattni
Point of correction: Pattni actually bought the Grand Regency from another Goldenberg icon, the late Mohammed Aslam of Pan African Bank infamy. Later on, the Central Bank took control of the Grand Regency because Pattni owed it Shs2.4 billion.
The Goldenberg scandal is so intricate, and involved so many people that almost all of Kenya’s politicians were part of it. Remember, the late Jaramogi admitted to having gotten part of Goldenberg money as did Wamalwa and Muite. Everyone who was in KANU at the time took the money, without a doubt.
That explains why its difficult to solve it. Just when you think its behind you, something else happens that brings up the Goldenberg ghost back into the limelight.
Kimunya got a good deal for Kenyans
According to the Nairobi Stock Exchange, TPS Eastern Africa had a market value of KSh 7.62bn as as 27/6/08. And according to the 2007 annual report of the company, it owned 11 hotels and lodges in East Africa and had an equity of KSh 3.68 billion and assets of KSh 6.78 billion as at 31/12/07.
http://www.serenahotels.com/news.asp?tri=archives
The hotels and lodges it owns in Kenya are Nairobi Serena, Serena Beach, Amboseli Serena, Samburu Serena, Mara Serena, and Kilaguni Serena. In Tanzania, it owns Kirawira Luxury Tented Camp, Lake Manyara Serena, Serengeti Serena, Ngorongoro Serena, and Zanzibar Serena.
So how can the Grand Regency Hotel be worth KSh 7-7.5 billion as claimed by some politicians and the press and yet it’s only one hotel? The Libyans definitely overpaid for it. They should have spent the KSh 2.9 billion on TPS Eastern Africa shares but I guess they’re flashy with oil dollars. Kimunya got a good deal for Kenyans but is hated for his success.
it is a good deal, Kenyans should let it go. Investigate more serious issues that generate economic growth. The best sales are made by independent thinkers especially when a decision has to be made quickly when the opportunity arises trust is the key. was the deal made in the country’s interest? So far nothing suggests otherwise. He should be congratulated not subjected to humiliation and protests. Spare the country any more negative press. Heal the existing wounds this is a chance for the government to discuss how best to use the funds from the sale to improve the infra structure
Kimunya should remain being the finance..The Mps who are blaming him thre the ones to step down all thre escaping is because thre dont want to pay taxes..Long live Kimunya..
Kimunya should not resigh..