PCEA Appeals for Help to Clear KSh700 Million Milele Beach Hotel Debt
The Presbyterian Church of East Africa is seeking financial support to address the debt facing its Mombasa-based hotel and prevent the property from being placed under receivership.
Mombasa, Kenya | August 31, 2026
The Presbyterian Church of East Africa (PCEA) has appealed to its members and the public to help raise approximately KSh700 million to settle outstanding financial obligations linked to its Milele Beach Hotel in Mombasa.
The appeal has also raised questions among some church members over why they are being asked to contribute towards settling a multimillion-shilling debt associated with a commercial investment.
PCEA Secretary General Robert Waihenya attributed the financial difficulties to several factors, including terrorist attacks that affected tourism at the Coast, the COVID-19 pandemic, court awards involving apartment buyers and interest that accumulated on loans.
Waihenya said the church took a KSh650 million loan in 2010 to finance the construction of 85 apartments as part of an expansion project intended to increase the hotel's revenue.
The project was subsequently affected by insecurity and delays, leaving the loan to accumulate interest while the hotel struggled to generate sufficient income to meet its financial obligations.
The COVID-19 pandemic dealt another major blow to the hospitality industry, further affecting the hotel's operations and its ability to service the outstanding loan.
The church later raised about KSh125 million towards addressing the financial challenges. However, part of the funds was used to settle court awards involving buyers who had paid deposits for apartments that were not completed.
According to PCEA, the outstanding financial obligations eventually grew to more than KSh1 billion before negotiations and subsequent payments reduced the amount currently being sought.
The church is now appealing for approximately KSh700 million to help settle the remaining obligation and prevent Milele Beach Hotel from being placed under receivership.
The appeal has raised concerns among some church members, who are calling for greater transparency over how the financial obligations accumulated and how previous contributions towards the hotel were utilised.
Church officials have defended the decision to retain the property, arguing that Milele Beach Hotel remains an important asset and that losing it would represent a significant financial setback for PCEA.
The church now faces the challenge of raising the required funds while addressing concerns over accountability and ensuring the long-term financial sustainability of the hotel.
The situation has renewed attention on the management of church-owned commercial investments and the need to ensure that such ventures remain financially sustainable while protecting the interests of the institutions and communities they serve.