BY AAMERA JIWAJI
n 2003, Bruce Madete named the dream cottages that he wanted to build on the 2.5 acres of his land in Gisambai, Western Kenya, Sosa cottages, from the Luhya word to rest or relax.The concept: a boutique hotel of seven cottag-es with peaked roofs, emulating the local African hut design but made from modern materials, was not an easy sell to ﬁnancial institutions. Mr Madete approached more than 10 main-stream banks and was turned away because “they couldn’t visualise the cash projections for such a project, and the hospitality industry was considered volatile”.
How to make an application
Submit an application form (available at www.ktdc.co.ke), with:
1. an application letter2. a business plan3. details on the total project cost, and4. documentary evidence of the security you will o
Services that KTDC o
1. Short term loans2. Long term loans3. Business advisory
KTDC encourages the country to invest in the wonders in our own backyard
Domestic tourism: The ﬁnal frontier for local entrepreneurs
Nairobi Business Monthly
Determined to make the dream a reality, he followed a self-ﬁnancing route and pooled the family savings, sold property and mortgaged their Nairobi home. Some months later, he was introduced to the Kenya Tourism Development Corporation (KTDC), the only development ﬁnancial Institution in the tourism sector in Kenya. Mr Madete outlined his business plan to KTDC and shared photos of the completed cottages and his plans for expansion. They agreed to a site visit and three months later approved a ten year loan to Mr Madete that gave him 60% of the value of the hotel at a 9% interest rate. This at a time when commercial banks had turned him away for being an unsafe investment risk.
Sosa Cottages in Gisambai, Western Kenya