PCEA launches Sh703m fund drive to save Milele Beach Hotel from debt
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The Presbyterian Church of East Africa has launched a Sh703 million fundraising drive to rescue its Milele Beach Hotel in Mombasa from debt, after paying Sh50 million to KCB to cut its outstanding loan to Sh753 million.
The Presbyterian Church of East Africa (PCEA) has launched a Sh703 million funds drive to save its Milele Beach Hotel in Mombasa from debt, drawing on contributions from its 4.8 million members while exploring government support and other sources of financing, the Nation reports.
The church says it has already paid Sh50 million to KCB after negotiations reduced the outstanding debt from Sh1.07 billion to Sh753 million. It now has three months to raise the remaining Sh703 million and redeem the property, which PCEA considers a key income-generating asset.
The rescue effort follows years of borrowing, failed attempts to transfer the property, court battles and receivership involving the Presbyterian Foundation and National Bank. The hotel is owned through the Presbyterian Foundation, a limited company that serves as the church's property-holding vehicle, and is listed among the foundation's assets.
In letters dated July 21 and August 28, the church outlined three options for raising the money: seeking government support, pursuing compensation for its Westlands property, and mobilising contributions from members through a Paybill and other channels. About 500 clerics are scheduled to meet President William Ruto, although General Assembly Moderator Rt Rev Patrick Thegu Mutahi has said PCEA is not seeking political patronage.
The appeal to members was reinforced during Sunday sermons, with retired General Assembly Moderator Rev Jesse Kamau urging congregants to give willingly. The hotel, located along the Kenyan coast north of Mombasa, has faced financial difficulties that the church hopes the fundraising campaign will resolve within the three-month window.