The Lake Basin Development Authority (LBDA) has accused Fairways Hospitality Kisumu Limited of manipulating the judicial system to avoid paying more than KSh25 million in rent arrears. The authority claims the company has continued occupying its property while frustrating efforts to recover the debt.
In a statement issued on Wednesday, March 11, LBDA alleged that the firm, linked to Irungu Nyakera, has used multiple legal processes to delay eviction and the recovery of outstanding rent. According to the authority, the dispute relates to unpaid rent that has accumulated over several years.
Dispute Over Lease Agreement
LBDA explained that the commercial relationship with Fairways Hospitality Kisumu Limited began under a lease agreement signed in 2019. The authority stated that the tenant later fell into substantial rent arrears, prompting both parties to sign a consent agreement on June 3, 2025.
Under the agreement, Fairways reportedly admitted owing KSh27,431,473 and committed to a structured repayment plan. However, LBDA claims the company failed to honour the terms and defaulted on the repayment arrangement.
“The consent provided terms for payment of the rent then outstanding and the default provisions thereto,” LBDA said. “Despite this formal acknowledgement, Fairways systematically breached the repayment terms.”
The authority added that the tenant has also failed to pay current rent since May 2025. As a result, the outstanding amount has risen to more than KSh25.9 million.
Court Battles Intensify
LBDA said the legal battle escalated in early 2026 as the authority attempted to recover the arrears. The agency accused the company of moving through several courts to stall eviction and prevent distress for rent.
According to LBDA, the High Court in Kisumu dismissed an injunction application filed by Fairways on February 12, 2026. The court ruled that LBDA had a contractual right to recover the arrears through lawful distress.
However, the authority alleges that on the same day, the company sought ex parte orders from a Magistrate’s Court without disclosing the High Court ruling. LBDA also claims similar tactics occurred at the Business Premises Rent Tribunal.
The authority said the High Court’s orders affirming its right to recover the rent remain valid and have not been appealed or set aside.
Lease Terminated
LBDA further stated that it terminated the lease agreement on February 12, 2026. According to the authority, the tenant currently occupies the property without legal authority.
The agency also emphasised that its contract was with Fairways Hospitality Kisumu Limited and not directly with Nyakera. LBDA said it has no formal relationship with the politician beyond the company involved in the lease agreement.
Concerns Over Firearm Incident
The authority also condemned reports that Nyakera fired warning shots during an incident at the property. LBDA called on the National Police Service to investigate the matter.
LBDA said the individual had publicly declared readiness to shoot anyone entering the premises. The authority argued that such actions occurred despite the lease termination.
“The authority remains committed to recovering every shilling of taxpayer money,” the statement said. “We will continue pursuing all legal avenues under the court orders and terminated lease agreement.”
Nyakera’s Response
Nyakera has presented a different account of the events surrounding the property dispute. He claimed that more than 100 individuals attacked his hotel early Wednesday morning, damaging property and injuring staff.
The former Principal Secretary said he fired two warning shots into the air after hearing the commotion. According to him, the shots aimed to scare away attackers who had stormed the premises.
“At 5:00am today, over 100 goons attacked my hotel in Kisumu,” Nyakera said. “They damaged property and injured our staff, including tying up a security guard.”
Nyakera also claimed that he contacted the area police commander seeking assistance. However, he alleged that officers failed to respond to the situation.
Claims of Political Interference
The politician further alleged that a senior government official had directed that he should not remain a tenant in a government-owned building. He linked the directive to his involvement in opposition politics.
Nyakera said he took over the premises in 2019 and signed a long-term lease agreement. He added that he has invested more than KSh235 million in developing the hotel facility.
“I took over these premises as a shell in 2019 and invested over KSh235 million,” Nyakera said. “If someone wants the property, we can conduct a valuation and discuss a sale.”
The dispute continues as both sides present conflicting claims over the property, rent arrears, and the circumstances surrounding the recent security incident.
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