Presbyterian church owned; Milele beach hotel closes down, hundreds to loose jobs

Milele beach hotel that was to be auctioned by the National Bank of Kenya in 2017 has to wind up its business following a directive from the bank claiming that the loan meant to finance the real estate business in conjunction with the presbyterian church, Presbeta Investments Limited failed to honor as a third party.

Presbyterian Foundation sold the Milele beach hotel to Presbeta in order to save the hotel from the auction and pay Ksh. 727 Million, a loan from NBK.

Presbyterian Foundation borrowed Ksh 811 Million loan from NBK to finance Milele beach of which, the foundation paid Ksh. 84Million since 2014.

Now the accrued interests after the sale of Milele beach to Presbeta mounts to Ksh. 1.8 Billion. NBK moved to acquire the hotel and its assets to repay the accrued loan.

High Court Judge Anne Omollo gave a green light to the bank to acquire the asserts form Milele beach hotel which is under the Presbeta Investment Limited.

NBK, however, wants to establish a better real estate business and close down the hotel from March 2020.