The Presbyterian Church of East Africa’s Bold Initiative to Rescue Milele Beach Hotel
The Presbyterian Church of East Africa (PCEA) has embarked on a substantial fundraising effort, aiming to recover its Milele Beach Hotel in Mombasa from crippling debt. With a target of raising Sh703 million within three months, the church is harnessing the power of its 4.8 million members while also seeking governmental support and other potential financing avenues.
A History of Financial Strain
Milele Beach Hotel, a significant asset for PCEA, has been ensnared in financial difficulties for years. After negotiations, the church has managed to pay off Sh50 million to KCB, effectively reducing an initial debt of Sh1.07 billion to Sh753 million. This reduction has provided a glimmer of hope, yet the clock is ticking as the church must mobilize substantial funds quickly to secure the asset.
Strategic Ownership Through the Presbyterian Foundation
The hotel is owned through the Presbyterian Foundation, which functions as the church’s property-holding entity. PCEA includes the Milele Beach Hotel among the foundation’s assets. The church has outlined a multifaceted approach to fundraising, including the pursuit of government support, potential compensation for another property in Westlands, and contributions from its members using various fundraising mechanisms like Paybill services.
Meeting with the President
One key aspect of the fundraising strategy involves a meeting between approximately 500 clerics and President William Ruto. Set for Wednesday, this meeting aims to strengthen ties and discuss support for the church. However, PCEA officials, including General Assembly Moderator Thegu Mutahi, have made it clear that this initiative is strictly non-political. They maintain that PCEA will not compromise its independence for political leverage.
The Call for Generosity Among Members
During a recent church service, retired General Assembly Moderator Jesse Kamau emphasized the importance of generous and voluntary giving from the congregation. He reassured members that their contributions, made without complaint, would serve a higher purpose—the Lord’s work. His encouragement aims to foster a spirit of unity as the church confronts this substantial financial challenge.
A Cultural and Economic Gem
Acquired in 2007, Milele Beach Hotel, originally known as Giriama Hotel, is not just another property; it represents a vital income-generating asset for PCEA. Developed through the collective contributions of members from 61 presbyteries, the facility is strategically located on a nine-acre beachfront in Mombasa. Notably, it stands as the only non-alcoholic establishment in the area, aligning with the church’s values and mission.
Legal Troubles and Complications
The struggle for Milele Beach Hotel has been marked by legal disputes, failed attempts to transfer ownership, and a series of court battles that have left the hotel’s future uncertain. The Presbyterian Church Men Fellowship (PCMF) had sought control of the hotel through Presbeta Investment Ltd in a 2015 deal involving a Sh1.2 billion Asset Purchase Agreement. However, this venture has faced numerous challenges, including allegations of non-payment to the National Bank.
A Promising Future
Despite its turbulent history, PCEA remains committed to redeeming, revamping, and reopening Milele Beach Hotel for the benefit of the church community, local residents, and the broader nation. According to Secretary General Rev Robert Waihenya, the church has demonstrated its resolve by paying an initial amount of Sh50 million to the bank, marking a crucial step forward.
Government Support and Resolution Strategy
The church is pursuing various strategies to secure financial assistance, including discussions with the government and reaching out to its members for contributions. Rev Waihenya’s correspondence to President Ruto indicates a determined effort to halt the potential sale of the hotel under what the church views as market undervaluation. The agreement seeks a resolution that will allow the church to maintain ownership and avoid further legal entanglements.
Ongoing Legal Proceedings
The financial turmoil surrounding Milele Beach Hotel stems from a complicated financing arrangement that began years ago. As the church aims to navigate through these challenges, it is essential to consider prior legal decisions and the underlying financial commitments made by Presbeta Investment and the Presbyterian Foundation. The past few years have seen multiple court rulings and declarations that complicate the path forward, laying the groundwork for current negotiations and funding efforts.
The Church’s Financial Commitment
PCEA’s longstanding commitment is reflected in its claim of having already paid a significant amount toward the total accrued debt. The church currently asserts it has fulfilled obligations by dispelling rumors surrounding the possible sale of its prized hotel, maintaining that their collective goal remains focused on the revitalization and reopening of this strategic asset.
Fundraising Challenges and Community Engagement
Beyond its meeting with political leaders, PCEA acknowledges the challenges posed by raising funds and the community’s varied responses. The church is engaging its members actively to foster a sense of ownership and shared responsibility toward a collective goal that extends beyond mere financial redemption.
With a combination of strategic negotiation, community engagement, and a clear focus on redeeming invaluable assets, PCEA is taking commendable steps to secure its future while reinforcing its central mission and values.
