NAIROBI, Kenya — The iconic Utalii Hotel is set for a long-awaited revival after the government announced a major refurbishment plan to restore the once-prestigious training facility to global hospitality standards.
Tourism and Wildlife Cabinet Secretary Rebecca Miano made the announcement on Thursday during the 49th graduation ceremony at the Kenya Utalii College, confirming that funds have already been allocated for the overhaul.
“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,” Miano said.
She added that the renovation blueprint includes the construction of a new students’ hostel under the state’s housing programme, signalling a broader shift to modernise the institution’s infrastructure.
“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 noted.
As part of ongoing reforms, the college also unveiled its new ultra-modern, state-of-the-art Individual Training Kitchen, designed to enhance practical learning for hospitality trainees.
The Utalii Hotel shut down in 2020 after years of heavy financial losses and warnings from the Auditor General about its unsustainable operations. A letter dated April 20, 2020, from then Tourism Principal Secretary Safina Kwekwe Tsungu described the hotel as economically non-viable and a drain on the college’s resources.
“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,” Kwekwe wrote at the time.
The shutdown followed repeated audit findings flagging severe financial distress. In 2017, then Auditor General Edward Ouko reported that the college had posted a Sh410.5 million loss and was technically insolvent, relying heavily on government and creditor support to remain operational.
That year, the institution recorded current liabilities of Sh3.4 billion against current assets of only Sh537.1 million — a negative working capital position of Sh2.8 billion.
Ouko further highlighted the college’s failure to service a Sh140 million government loan issued in 1996, with only Sh13 million repaid by June 2017. Accrued interest had ballooned to Sh2.9 billion.
Although the college had initiated negotiations to have the debt and interest written off, the Auditor General reported no recorded progress as of 2018, warning that operations risked grinding to a halt without intervention.
The government’s renewed investment is expected to reposition Utalii as a regional hub for hospitality training and boost Kenya’s tourism competitiveness.
