Dear Sir,

The Central Bank of Kenya (CBK), must not acqure the Grand Regency Hotel with a view to include it in their balance sheet but to sell it as a reposessed item for debt recovery.

The role of CBK as stipulated in the CBK Act is to formulate and implement monetary policy that should be directed to maintain stability in general price levels in Kenya.

It’s other principal objective is to foster liquidity, solvency and proper functioning of a stable based financial system.

In the case of the Grand Regency Hotel, the bank acted ultra vires by advancing the sum of Kshs2.5billion to Uhuru Highway Development in the 1990s. The unclear events then implicated and involved the Goldenberg, Messers Paul Kamlesh Patni, many other people alive and some who have since passed on. The court cases and legal battles that have compounded all these are within public knowledge and recent history.

Now the CBK have taken possession of the prestigeous hotel in Nairobi.

The bank must therefore sell it off expeditiously as a reposesed item and not factor it as an asset in their books of accounts.

CBK is a monetary monetary policy regulator and has no business owning the hotel.It also has no capacity to run business.

The earlier the item is put on sale to recover the Kshs.2.5bn. and related expenses the better.

Felix Owaga Okatch

tel: 254-721-735489

___
Date: Tue, 29 Apr 2008 01:25:09 -0700 (PDT)
From: felix okatch
Subject: CENTRA BANK OF KENYA AND THE GRAND REGENCY HOTEL