InterContinental Hotel to Close and Fire Entire Staff
Kevin Namunwa  |  Aug 4, 2020

The legendary InterContinental Hotel is set to close its Nairobi branch with all employment positions to be scrapped off.

In a notice by the InterContinental Hotels Corporation Limited, the conglomerate said that all positions would be declared redundant in 45 days. The company cited operational reasons as the main cause of their closure.

The corporation did not specify whether it was affected by the coronavirus pandemic hence the closure.

The pandemic has hugely affected the hospitality sector in Kenya as the government’s restrictions continuously bite into the sector.

"InterContinental Hotels Corporation Limited Kenya (IHCL) is considering a permanent closure of InterContinental Nairobi and winding up its operations in the Republic of Kenya. As a consequence of such intended winding up, all employment positions would become redundant," the notice reads in part.

The employees who will be soon losing their jobs were asked to raise concerns in relation to the redundancy process through stipulated communication channels.

Earlier in the year, reports had suggested that the hotel was facing closure or action over debt accounting to more than Ksh700 million. The Chief Executive of Tourism Finance Corporation (TFC) Mr Jonah Orumoi further confirmed that the company was indeed facing financial challenges.

In May 2020, Fairmont announced the indefinite closure of two of its luxurious hotels in the country, The Norfolk Hotel in Nairobi and the luxurious Mara Safari Club citing the adverse effects of the Covid-19 pandemic on the hospitality industry as the key reason.

All employees were sent home after 116 years of operation. Saudi Prince Al-Waleed bin Talal later struck a deal to sell off his stake in the five-star hotel to a Nepalese billionaire.