In December 2024, the National Bank of Kenya placed the Presbyterian Foundation, owner of Milele Beach Hotel, under receivership . Kamal Anantroy Bhatt of Anant Bhatt LLP was appointed as the official Receiver/Manager, tasked with overseeing the management and financial restructuring of the hotel .
The Implications:
- Effective immediately, all business dealings concerning Milele Beach Hotel must be conducted through the appointed Receiver
- The move reflects the importance of due diligence and structured oversight in preserving asset value during periods of financial distress
- Stakeholders, including creditors, suppliers, and employees, now look to the Receiver for guidance on the hotel’s future direction
The receivership was a significant escalation. After nearly two decades of non-performance, NBK had finally lost patience with the church’s management of the property .
The Debt Crisis
By 2024, the outstanding debt had ballooned to approximately Sh1.07 billion . The debt had grown despite years of payments and massive congregational fundraising.
The Numbers:
- 2007: KSh811 million loan
- 2015: KSh767.6 million
- 2016: KSh727 million
- 2019: KSh761 million
- 2024: Sh1.07 billion
- 2026 (negotiated): Sh753 million
The debt growth reflects a perfect storm of circumstances:
- Interest and penalties accumulating on stalled construction
- Legal costs from court battles with buyers
- Management indecision during leadership transitions
- Economic shocks from terrorism and COVID-19
- Mismanagement of funds raised from congregants
The Negotiation
In early 2026, PCEA leadership, through the intervention of President William Ruto, entered negotiations with the bank .
The Outcome:
- The debt was reduced from Sh1.07 billion to Sh753 million
- The church paid Sh50 million as a show of commitment
- A three-month window was granted to raise the remaining Sh703 million
PCEA Secretary General Rev Robert Waihenya wrote to President Ruto on July 21, 2026: “We are pleased to report that the Church has demonstrated its commitment by paying the initial sum of Sh50 million required by the bank, and is now mobilising, within the strict timelines set by the bank, the balance of approximately Sh703 million” .
Operation Okoa Milele
In August 2026, PCEA launched “Operation Okoa Milele Beach Hotel” (“Save Milele Beach Hotel”), appealing to its estimated 4.8 million members to raise the remaining Sh703 million within three months .
The Fundraising Strategy:
- Congregational contributions through a dedicated Paybill number
- Government support – A scheduled meeting with President William Ruto at State House
- Compensation for the church’s Westlands property
PCEA said the President’s intervention halted disposal of the hotel while it was under receivership and prevented its sale at what it considered a gross undervalue .
“The church has further resolved, unequivocally, that the hotel is not for sale, and it is our firm intention to redeem, revamp and reopen it for the benefit of the church, the people of Mombasa and the nation at large,” Waihenya wrote .
The Viral Video Backlash
A viral video showing church clergy asking members to contribute triggered widespread criticism, particularly over remarks equating financial support for the hotel with “giving to God” .
The Controversial Remarks:
- “Every coin counts. Every one of what you do counts. Whatever you give matters”
- “Please do not listen to politics. You are giving to the King of the Church, who is Jesus Christ, and he is the ultimate giver. We can never outgive God”
- The framing that contributions were being made to the Lord, not to a commercial venture
Critics and some members questioned why church funds and members’ contributions should be directed towards a commercial venture facing financial difficulties instead of core religious and community programmes .
The Church’s Defense
In response to the criticism, PCEA Secretary General Robert Waihenya described the situation as a form of spiritual warfare .
Key Defense Points:
- The current leadership inherited the problem
- Terrorism, Covid-19, and court awards contributed to the crisis
- The situation is “a spiritual problem”
- PCEA had recently built a Sh300 million church on the site
- The church has already paid more than Sh900 million towards the loan
Retired General Assembly Moderator Jesse Kamau urged congregants to give “willingly, cheerfully, knowingly and sacrificially” and not to “give while complaining” .
The Political Controversy
PCEA found itself in a delicate position when it announced plans to meet President William Ruto at State House on September 2, 2026. About 500 clerics were scheduled to attend the meeting .
The Church’s Statement: General Assembly Moderator Thegu Mutahi issued a statement insisting that PCEA was “respectable, independent and non-partisan” and would not “compromise its independence or seek political patronage” .
However, a PCEA communication dated August 28 listed government support as a key approach to raising the redemption money, suggesting political intervention was being actively sought .
The President’s Role: PCEA claimed President Ruto’s intervention had already halted disposal of the hotel while under receivership and prevented its sale at a “gross undervalue” .
The Presbeta Investment Failure
Court papers show that the Presbyterian Church Men Fellowship (PCMF) later became involved in the ownership through Presbeta Investment Ltd, which sought to acquire the hotel in 2015 through a Sh1.2 billion Asset Purchase Agreement under which it was to take over an outstanding National Bank loan .
The Deal That Failed:
- Presbeta was to pay a Sh150 million deposit directly to NBK
- Take over the outstanding loan
- Occupy and operate Milele Beach Hotel
The Failure: Presbeta never paid the deposit. This triggered a cascade of legal disputes and financial penalties, with the Presbyterian Foundation claiming Presbeta owed Sh120 million in liquidated damages for breaching the agreement .
The failed Presbeta deal represents another chapter in the saga of mismanagement and poor financial decision-making that has characterized the hotel’s ownership.
→ Previous Article:The Great Disappearance: Where Did PCEA’s Sh430 Million Milele Hotel Rescue Funds Go?
→ Continue reading: Faith Meets Finance: What the PCEA’S Milele Beach Hotel Saga Reveals About Church Governance in Kenya
