LBDA clarifies dispute involving ex-PS Irungu Nyakera's Kisumu hotel

The Lake Basin Development Authority (LBDA) has sought to clarify the dispute involving Fairways Hotel in Kisumu, which has been linked to former Principal Secretary Irungu Nyakera.

In a press release issued on Wednesday, LBDA stated that its relationship with Fairways was based on a commercial landlord-tenant lease agreement signed in 2019.

According to the authority, Fairways Hotel acknowledged an outstanding debt of Ksh.27.4 million in a voluntary consent agreement dated June 3, 2025. The agreement outlined repayment terms for the arrears.

However, LBDA claimed the company subsequently breached the repayment plan and failed to honor the agreed payment schedule.

“Fairways has failed to pay any current rent from May 2025 to date, with total outstanding arrears now exceeding Ksh.25,900,000,” the authority stated.

LBDA further alleged that the company sought to delay the recovery of the rent through legal maneuvers.

The authority said that when it initiated lawful distress for rent, Fairways moved to the High Court in Kisumu under case number HCC E028 of 2025 and obtained ex parte status quo orders.

According to LBDA, the court later dismissed Fairways’ motion for an injunction on February 12, 2026, affirming the authority’s contractual right to levy distress for rent to recover the arrears.

The authority maintained that the orders issued by the High Court remain in force.

On the same day the case was dismissed, LBDA alleged that Fairways moved to the Magistrate’s Court in Kisumu under case MCC E091 of 2026 and obtained fresh ex parte orders without disclosing that the High Court had already ruled on the matter.

The authority further claimed that once the Magistrate’s Court was informed of the circumstances, it set aside its earlier orders on February 19, citing lack of jurisdiction and irregular conduct by the tenant.

LBDA also alleged that the company later moved to the Business Premises Rent Tribunal (BPRT) on February 25, seeking mandatory orders.

However, the authority said the tribunal stayed those orders on March 9 after being briefed on the developments.

The authority maintained that the landlord-tenant relationship was lawfully terminated on February 12, 2026, following termination notices issued in accordance with the lease agreement and High Court orders.

LBDA said Fairways is currently an unlawful occupant on the premises and accused the company of trespassing.

The authority also distanced itself from Nyakera, stating that its agreement was strictly with Fairways Hospitality Kisumu Limited.

LBDA said it remains committed to pursuing all legal avenues to recover the outstanding rent and safeguarding public resources.

“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,” the statement read.

The statement comes following a robbery attack at Fairways Hotel on Wednesday morning. According to police, Nyakera, who was at the hotel, fired two shots in the air to scare away the suspects. 

Following the incident, Nyakera accused LBDA of being behind the incident. 

The matter is actively before a Kisumu High Court and the rent tribunal.