In Summary
  • The loan was used for the refurbishment of Utalii Hotel in Nairobi between 1996 and 2000.
  • Mr Balala said the financial challenge has not affected training at the college.

The government has been asked to write off a Sh2.5 billion debt owed by Kenya Utalii College (KUC) as it is facing a serious financial crisis.

Tourism Cabinet Secretary Najib Balala said the college is currently indebted to the tune of Sh3 billion.

Of that liability, Sh2.5 billion accumulated from interest and penalties on a Sh140 million loan the college received from the government in 1996.

The money was used to refurbish Utalii Hotel in Nairobi between 1996 and 2000.

Mr Balala said the college had by December last year repaid Sh13 million whereas the loan along with interest and penalties had accrued to Sh2.5 billion.

“I request the government to waive the interest and penalties accrued on the loan in an effort to improve the college’s working capital,” Mr Balala said.

REVENUE

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