Category Archives: Kenya domestic tourist

Turning Dreams into Hotels – Angama and Hemingways

From recent social media posts, we have two tales about how two award-winning hotels came to be built.

Angama: The story of Angama was published back in 2017 but was re-shared this week in a newsletter from the lodge. It was contained in a blog that was written by the founder on the putting together of finding the right partners and putting together a project team and how they managed to execute on a design and vision to build a 10,000 square meter lodge on a cliff in the Mara, in just ten months. This came after eight months of chasing funding.

Hemingways:  The story of Hemingways, is from an interview of the Chairman of Hemingways Holdings, Dicky Evans by journalist Joy Doreen Biira.

He narrates how they operated a hotel in Watamu on the Kenyan coast for 30 years before deciding that there was an opportunity to do a hotel property in the capital city of Kenya. Then, on to the search for an ideal location, acquiring the land, growth by acquiring other companies, working with planners and neighbours, sourcing environmental permits, utilities etc. all to build and fit out what became Hemingways Nairobi at a total cost $22 million. To do this, they also got some funding from I&M Bank, and also invested in other properties in the Mara and in Naivasha and are doing renovations and expansion into new apartments at Watamu.

The importance of partnerships comes in both stories; Hemingways at Watamu partners with other hotels in Nairobi, which don’t have properties as the Coast, to host tourists who want a  private luxury experience at the beach, while Angama, in another post, narrates how local airlines came together to reduce the flying time for their tourists moving between the Mara in Kenya and Serengeti in Tanzania to just a few hours – eliminating an extremely  long process of several flights through Nairobi, Kilimanjaro, and Arusha and airports.

In the two posts, there are unique insights you rarely hear local investors talk about such as how much money they put have invested into their projects, the process of acquiring land, and how infrastructure developments lead to new investment opportunities and possibilities. Also, the day-to-day running and management, and the use of expatriate project managers is a theme that runs through the stories of the two properties that were built quite fast and which are now receiving global accolades for excellence.

Some of the recent awards the hotels have been feted for include the “Best Resort in the Middle East and Africa” by Conde Nast Traveller for Angama, while Hemingways was named the “Best Hotel in Kenya” in three categories (top 10 hotel, top luxury, top service) by Trip Advisor.

Mara Triangle reports on running the Masai Mara

Earlier in December came some news reports of 26 elephant deaths that had happened in recent months in the Masai Mara area. This came a few months after a national uproar in Kenya over the deaths of 11 rhinos from a wildlife translocation program gone wrong,

The source of the stories on the elephant deaths was a report from the Mara Elephant Project (MEP), but the organization has since retracted the sensational claims.

That said, there’s a great ongoing series of reports on the management or the running of the Masai Mara game reserve by Mara Triangle. Written and archived monthly, the Mara Triangle reports give great insight into activities in the Mara, on topics like revenue collection, security updates (including poaching numbers), staff changes, rainfall, number of visitors, special arrivals, scientific research being done in the Mara, filming in the park and also on wildlife deaths.

Excerpts from different 2018 monthly reports

Revenue

  • March to May is the most difficult period as in those months, expenditure substantially exceeds revenue. March revenue was Kshs 30 million, and July was Kshs 98 million despite 44% of visitors not paying the Conservancy fee. In August they crossed the $1 million revenue mark for the first time ever, earning Kshs 109 million. Majority of visitors were from the Narok side which has better game viewing and management.
  • Discussions are ongoing between the Mara Conservancy and Narok County government, for the Mara Conservancy to manage all aspect of the park, through Seiya Ltd, except revenue collection, which is done by KAPS (Kenya Airports Parking Services). For that, they would retain 30% of the revenue.
  • Instances of non-residents, even Chinese tourists, posing as residents to enter the park, are common.
  • There is a high number of non-paying visitors and KAPS was asked to do a reconciliation. It found that, in April 56% of visitors to the Triangle did not pay the Conservancy.
  • They have applied to Safaricom for a Paybill number so people can use their M-Pesa to pay the conservancy fee. The Paybill number (863297) has since been activated and they hope to move to a cashless system of collections.
  • Governors Balloons started paying revenue for the first time in seventeen years.
Rains and Roads
  • In 2018, the Mara had its highest rainfall since 2006 causing flooding and heavy damage to roads. The rains in the areas were actually the highest recorded in sixty years.
  • Heavy rains damage roads and the management sometimes resorts to closing off some areas of the park. Vehicles crisscrossing off-road, in search of wildlife, only add to the problem. The County Government has directed that it does not want to see any saloon cars, in particular, the Toyota Probox, in the park.

Poaching and Wildlife Deaths

  • They document all wildlife deaths, the causes of these, and if there was a human involvement (versus death from natural causes), especially of elephants and rhinos and the recovery of the tusks and horns from the dead animals.
  • A District Warden from the Kenya Wildlife Service (KWS) collects all recovered ivory after each piece has been recorded and signed for. 
  •  KWS now has a trained prosecutor in Kilgoris and there are discussions on how to fund a training course for non-commissioned officers on wildlife law, preparation of statements and court procedures.
  • Sniffer dogs are an important aspect of park security, tracking poachers and thieves. New dogs are imported from overseas, trained, and extensively traded by vets.
Human-Wildlife Conflict:
  • A study found that the main actors in this are spotted hyaenas (53% of instances), leopards (32%), and then lions (15%).
  • Most households lose an average of 3.5% of their livestock to predators.
  • A compensation system has been developed: a kill is reported, rangers visit the scene to verify, photos are taken, and if approved, payment is done at the end of the month. The Conservancy is then reimbursed by the Angama Foundation.

The World-famous Migration

  • This year, 2018, saw one of the worst migrations in recent years. While newspapers report that Tanzanian authorities started fires to create a barrier for the wildebeest, something that they do every year, this did not in fact delay the migration  – but this was a story put out by the tourist industry to explain why safaris they sold on the basis of the migration did not, in fact, feature the migration.

  •  The heavy rain in the Serengeti in Tanzania meant the wildebeest had enough water and grass and did not need to migrate until later. Wildebeest only move from Serengeti to the Mara if they have exhausted water and foliage.  The Mara used to have its own Loita migration, but that doesn’t exist any more as the Loita wildebeest population has crashed.
Bad Manner and Tourism:
  • There are daily complaints about indiscipline and more up-market operators are avoiding the Mara during the high season. A Dutch diplomat refused to pay fine for driving off-road and then blocked a bridge.
  • There is chaos at many crossings, with as many as 300 vehicles present some with people running between them (and some of these images were shared on social media).

  •  It is very difficult to gauge how much the wildebeest are affected by too many vehicles.  The vehicles disrupt the crossing and drive the animals to quieter spots. 
  • Drivers do not obey rules, especially when they think they are not being monitored. On the 23rd (of September) we had nearly 20 vehicles around a leopard sighting .. It is most unfortunate that we can not rely on our resident drivers, (who are well-trained and from top camps) to police themselves. 
  • Campsites are sometimes left in a mess, including two cases by professional safari guides.
Other Masai Mara findings:
  • Visitors in the year included Narok Governor Tunai, Cabinet Secretaries for Tourism (Balala)  and also for Internal Security (Matiangi). Leslie Roach who had donated $200,000 when the Conservancy was started, also visited the Triangle with her family. Also, John Ward visited Serena, a day before the 30th anniversary of his daughter Julie’s death (Apparently Serena was the last place that Julie was confirmed being seen alive). Some MCA’s visited, requesting assistance and David Attenborough also visited the Mara. He is making a film about the loss of biodiversity in his lifetime and his crew also did some filming for a Netflix series on ecological habits that will be shown in August 2019.  
  • The audit for the year to June 2018 was done by  Deloitte who reported that the Triangle had income of Kshs 263 million and a profit of Kshs 10.5 million after expenses of Kshs 252 million.  
  • KAPS removed three members of staff for possible fraud.
  • Some large Flircameras donated by WWF need repair but that organization no longer has funding for the camera project.

KQ KAA Partnership at JKIA

This week, Kenya Airways and the Kenya Airports Authority – (KAA) published a joint notice about discussions towards collaboration in the management of Nairobi’s Jomo Kenyatta International Airport (JKIA).

This is not new or unique. Last year the Ethiopia government merged it’s airline, the largest airline in Africa, making it the centerpiece of a hub-strategy for Addis that incorporates the airport, passengers, logistics, training, catering and tourism). In Rwanda there is also a similar management arrangement, another soon at Tanzania, while the latest results from Emirates, in its 30th year of profit announced last month, show 14% of their revenue was from cargo and 15% was from D-nata which does ground handling and logistics for other airlines around the world including from extensive investments in Europe, Asia, and North America.

At a previous shareholders meeting (AGM), KQ Chairman Michael Joseph spoke of closer ties with the government, and the need for the airline to get in involved in route approval, and protecting Nairobi as its hub. He said that whenever a foreign leader visited or the President of Kenya went overseas, a “win” from such trips was the granting of more rights to foreign airlines to fly into Kenya, which was to the detriment to KQ, in which the government had a significant investment.

According to its latest results (June 2016 from the Auditor General of Kenya), KAA which constructs, operates and maintains aerodromes around Kenya (including 16 airports)  had Kshs 13.5 billion revenue and a Kshs 2.6 billion profit (in the previous year, this was Kshs 4.4 billion).

The revenue includes Kshs 6.7 B (billion) in passenger service charges, Kshs 1.7B from concessions and Kshs 3 B from landing and parking fees – half of which are probably paid for by Kenya Airways. JKIA handled 100,000 aircraft takeoffs/landings and processed 6.7 million passengers (out of the 9.6 million KAA handled in total) and 235 million tons of cargo.

But KAA also comes with it a lot of politics such as tussles over the composition of its board and top management and project disputes such as the Greenfield terminal at JKIA, and with private developers such as World Duty Free at JKIA and other land disputes at various airports around the country.

The newspaper report (Business Daily) also mentions that the proposed partnership with will also see Kenya Airways exempted from payments of some Value Added Tax (VAT) and the Railway Development Levy, a 1.5% tax on all imports into Kenya that is meant to finance ongoing development of the Standard Gauge Railway (SGR).