The government has unveiled plans to refurbish the iconic Utalii Hotel, signaling a long-awaited comeback for the prestigious facility.
Tourism and Wildlife Cabinet Secretary Rebecca Miano revealed ThurSday that funds have already been allocated to revive the hotel, which has suffered years of neglect.
“The government has reflected on this matter over time, and I am here today to announce that we have set aside funds to refurbish the Utalii Hotel. The work will commence immediately,” said Miano.
She was speaking during the 49th graduation ceremony at Kenya Utalii College.
The refurbishment plan will also include the construction of a new hostel under the government’s housing initiative.
“Utalii will be upgraded to meet globally accepted standards. We will transform this institution into what it is meant to be. I am convinced that nothing should stop Utalii from becoming Africa's undisputed Centre of Excellence in hospitality training,” she added.
As part of ongoing reforms, the college also commissioned its new ultra-modern Individual Training Kitchen, which aims to enhance practical learning for students.
The Utalii Hotel was closed indefinitely in 2020 after being deemed economically unviable.
The closure was prompted by the economic impact of the COVID-19 pandemic and the hotel's pre-existing financial struggles, which made it unsustainable.
At the time, Tourism Principal Secretary Safina Kwekwe Tsungu noted that the hotel had become a liability, failing to generate revenue while draining the institution’s resources through high overhead costs.
“Following submissions made by your office, it was noted that it is not viable for the institution to operate the Kenya Utalii Hotel as it does not generate revenue and yet depletes the institution’s resources in covering overhead costs,” Tsungu wrote in a letter to the principal.
The closure followed repeated warnings by the Auditor General, who had flagged the economic unsustainability of the hotel and its satellite campuses. In 2017, then Auditor General Edward Ouko raised concern after the college posted a Sh410.5 million loss, describing the institution as “technically insolvent” and dependent on government support to continue operating.
Ouko also highlighted non-compliance with a government loan agreement for Sh140 million provided in 1996 to refurbish the hotel. By June 2017, only Sh13 million had been repaid, while accumulated interest had ballooned to Sh2.9 billion.
“Although the previous year’s financial statements indicated that the college had entered negotiations with the government to have the loan and accumulated interest written off, no meaningful progress had been recorded,” he noted in a 2018 audit report, warning that operations could grind to a halt without government intervention.
The new refurbishment signals a decisive effort to restore Utalii Hotel to its former glory and reestablish it as a cornerstone of hospitality training in Africa.
