Fairmont has reversed a memo it sent firing all its employees after President Uhuru Kenyatta announced a Sh2 billion stimulus package for hotels.
Last week, the Fairmont Norfolk closed indefinitely, citing the effects of the ongoing coronavirus pandemic.
The company said it could no longer operate as normal following the virus which struck the nation on March 13, 2020.
Mehdi Morad, the country general manager, announced that the company could not sustain its business and would terminate its employees' contracts.
But in a statement on Thursday, Morad said the company is committed to ensuring the health, safety and well-being of the employees.
"To this end, the management has withdrawn the said memo as we continue with consultative meetings with all stakeholders until an agreement is reached," he said.
"Thank you for your continued support and understanding during this uncertain time."
Solicitor General Kennedy Ogeto in a letter to Morad last month had sought answers following the firing of employees, saying the issue was a matter of public importance.
“This matter is of public importance and great concern to the government and in view of the Attorney General’s mandate to promote, protect, and uphold the rule of law and defend public interest, this office should be very grateful if you would provide it with clarification regarding the said media reports and complaints from employees including on the veracity thereof and justification for taking such action, if this is the case,” Ogeto said in the letter dated May 29.
The letter was copied to Head of Public Service Joseph Kinyua, AG Paul Kihara, Labour CS Simon Chelugui, and PS Peter Tum.
In the latest stimulus package by the President, he said the tourism sector has suffered the most because of restricted movements and suspension of international flights.
He said the government plans to provide soft loans to hotels and related establishments through the Tourism Finance Corporation
A total of Sh2 billion will be set aside to support renovation of facilities and the restructuring of business operations by actors in the industry.
