Kenya hospitality news update – Red Cross invests in hotel sector to generate income


When last week the MP for Wajir South, one Muhammed Sirat, was thrown out of parliament in Nairobi by the Speaker, it became wider public knowledge that the Kenya Red Cross Society was in the business of investing in sustainable and viable projects to secure a regular income towards its many charitable activities. Sirat, called a ‘brainless attention seeker’ by one of his colleagues on condition of anonymity, had tried to smear the Kenya Red Cross and Red Crescent Society by attempting to accuse them of misusing donations to build a business empire, before then accusing other MP’s of trying to silence him, prompting his ejection from the chamber for his misconduct.

Fact is that the Kenya Red Cross and Red Crescent Society depends presently on an overwhelming scale on donations by well wishers and from international organizations, to carry out their work for emergency relief services, clinics and towards their public health programmes. Donations however depend not only on the good will of givers but are like much else subject to economic cycles. Inflation in Kenya presently runs at over 15 percent according to the latest figures available, fuel prices are as of today up again and the economic outlook remains clouded inspite of positive underlying factors. Hence have strategists within and close to the Red Cross and Red Crescent Society in Kenya decided to enter into business ventures, namely the hospitality sector, which over the years has persistently paid dividends and earned returns. While these businesses itself are taxable, the income generated for the Red Cross will go towards financing their humanitarian programmes, opening a second axis of funding much needed considering the demand on the Red Cross’ services, especially during this period of drought, or considering the influx of refugees from Somalia for instance.

In Nairobi the Red Cross Society is involved in the Red Court Hotel, as it is already in Nyeri where a sister facility is in operation, but more ventures are planned for Kisumu, Eldoret and Malindi according to information available on their website. Another high class property is due to open in Nairobi before the end of the year too, to further expand the society’s investments.

Be sure to watch this space when their new hotel opens its doors, expected to be in December 2011, and then read all about their ambitious plans and what prompted them in the first place to enter the hospitality business to finance their humanitarian work.