Kenya’s hospitality sector will receive a KSh2 billion stimulus package from the government, a move that seeks to cushion the industry from the impacts of the COVID-19 pandemic, that has seen a dip in its revenues.
Speaking during the Madaraka Day Celebrations, President Uhuru Kenyatta said stakeholders of the sector will meet to finalize the protocols to guide the processes of re-opening the industry.
Kenya’s tourism and hospitality sector is the worst hit by the pandemic as passenger flights remain grounded, restricted movement, and the introduction of social distancing protocols. Experts predict that revenues will drop at least by 60% by the end of 2020, which will trigger massive job cuts.
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Last week, Fairmont announced the closure of its Norfolk and Mara Safari Club hotels and fired all the employees due to the pandemic. The hotel cited the current impact of the virus on travel and the uncertainty as reasons behind the closure. The termination will be effective on 5th June 2020, after which Fairmont will issue termination letters.
Elsewhere, Serena announced the closure of some of its establishments as from 27th March 2020 in anticipation of reduced business levels until 15th June 2020. However, in a memo to staff members, the Hotel now says that they are certain their units will not open for business in the month of June 2020. Therefore, with respect to June 2020, all staff will take unpaid leave until further notice.
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