KISUMU, Kenya — The Lake Basin Development Authority (LBDA) has issued a statement clarifying its ongoing dispute with Fairways Hotel in Kisumu, which has involved former Principal Secretary Irungu Nyakera.
In a press release on Wednesday, LBDA emphasized that its relationship with Fairways Hotel was strictly a commercial landlord-tenant agreement, signed in 2019, and not connected to Nyakera personally.
Outstanding Rent and Legal Proceedings
According to LBDA, Fairways Hotel acknowledged an outstanding debt of KSh 27.4 million in a voluntary consent agreement dated June 3, 2025, which outlined repayment terms. The authority claimed the hotel subsequently breached the repayment plan, failing to pay current rent from May 2025 onwards, with arrears now exceeding KSh 25.9 million.
LBDA said that attempts to recover the rent through lawful distress prompted Fairways to seek legal intervention. The hotel first moved to the High Court in Kisumu (HCC E028 of 2025), obtaining ex parte status quo orders. However, the High Court dismissed Fairways’ injunction motion on February 12, 2026, affirming LBDA’s contractual right to recover arrears.
Following this ruling, LBDA alleged that Fairways filed a new case in the Magistrate’s Court (MCC E091 of 2026) and obtained ex parte orders without disclosing the High Court’s earlier judgment. Once informed, the Magistrate’s Court set aside its orders on February 19, citing lack of jurisdiction and irregular conduct.
Fairways also approached the Business Premises Rent Tribunal (BPRT) on February 25, but the tribunal stayed the orders on March 9 after reviewing the case. LBDA maintains that the landlord-tenant relationship was lawfully terminated on February 12, 2026, following the High Court ruling and termination notices issued in line with the lease agreement.
Allegations of Unlawful Occupation
LBDA said Fairways Hotel is now an unlawful occupant on the premises and accused the company of trespassing. The authority reaffirmed its commitment to recover all outstanding rent and safeguard public resources, stating:
“The authority remains committed to recovering every shilling of taxpayer money and will continue to pursue all legal avenues as per the orders of the court and the lease agreement already terminated.”
Context: Kisumu Robbery Incident
The statement comes after a robbery at Fairways Hotel on Wednesday morning. Police reports indicate that Nyakera, present at the hotel, fired two shots in the air to scare away the suspects. Following the incident, Nyakera publicly accused LBDA of orchestrating the attack.
LBDA distanced itself from these claims, reiterating that the dispute is strictly with Fairways Hospitality Kisumu Limited and that legal processes remain ongoing at both the Kisumu High Court and the Rent Tribunal.
The authority stated it will continue to pursue all legal avenues to recover arrears and ensure compliance with court orders.
