Protesters outraged over Kenyan-Libyan hotel deal

NAIROBI – Kenya’s prime minister, Raila Odinga, summoned cabinet colleagues yesterday to look at the secretive sale of a luxury hotel at what critics say was a knockdown price, while protesters demanded the finance minister be fired over the deal.

The Grand Regency deal has stoked national outrage and fuelled tensions in an already fragile coalition government set up in April to end a post-election crisis. About 10 legislators were among the 100 or so protesters who marched from the hotel in what organisers said was the first in a series of planned demonstrations in Nairobi.The Regency deal, involving Libyan investors, has added to suspicions of continued large-scale corruption after a series of scandals in east Africa’s biggest economy, which foreign businesses routinely cite as a deterrent to investment.The saga has pitted mainly ministers from Odinga’s Orange Democratic Movement against Kimunya, a loyal ally of President Mwai Kibaki.Kimunya has been finance minister since 2003, in fact – for most of Kibaki’s rule.Reversing prior remarks the government-owned hotel had not been sold, Kimunya said last week it had gone for US$45 million after an offer “too sweet” to refuse.Nampa-ReutersAbout 10 legislators were among the 100 or so protesters who marched from the hotel in what organisers said was the first in a series of planned demonstrations in Nairobi.The Regency deal, involving Libyan investors, has added to suspicions of continued large-scale corruption after a series of scandals in east Africa’s biggest economy, which foreign businesses routinely cite as a deterrent to investment.The saga has pitted mainly ministers from Odinga’s Orange Democratic Movement against Kimunya, a loyal ally of President Mwai Kibaki.Kimunya has been finance minister since 2003, in fact – for most of Kibaki’s rule.Reversing prior remarks the government-owned hotel had not been sold, Kimunya said last week it had gone for US$45 million after an offer “too sweet” to refuse.Nampa-Reuters