NAIROBI, Kenya, Mar 11 — The Lake Basin Development Authority (LBDA) has declared the Fairways Hotel in Kisumu, operated by businessman and Nairobi gubernatorial aspirant Irungu Nyakera, a “chronic defaulter”.
The authority cited rent arrears exceeding Sh 25.9 million, labeling the hotel’s current occupation as unlawful.
In a statement on Wednesday, LBDA outlined a history of rent defaults dating back to 2019, when Fairways Hospitality Kisumu signed a lease agreement with the government agency.
Despite a June 2025 consent agreement acknowledging a debt of over Sh 27 million and agreeing to a repayment plan, LBDA said the hotel systematically failed to meet its obligations.
“On February 12, 2026, upon hearing the parties, the High Court dismissed Fairways’ motion for an injunction, expressly affirming LBDA’s contractual right to levy distress for rent to recoup arrears before the debt became impossible to recover,” the statement read, noting that Fairways Hospitality Kisumu is now trespassing on the premises.
The authority accused the hotel operators of repeatedly misusing Kenya’s judicial system to frustrate lawful rent recovery, citing multiple ex-parte court applications and interim tribunal orders obtained by Fairways, which were subsequently stayed or set aside for material non-disclosure and irregular conduct.
Morning raid
The declaration comes after an early morning incident at the Kisumu property, where Nyakera reportedly fired warning shots after attackers allegedly stormed the hotel, tying up staff and vandalizing property.
Nyakera, patron of the Democracy for Citizens Party (DCP), claimed the attack was politically motivated.
“I quickly went after them, shooting twice in the air as they fled,” Nyakera said, adding that police had not arrived hours after he contacted them.
He also accused Interior Principal Secretary Raymond Omollo of orchestrating efforts to force him out of the property, which he says he has leased for 50 years and invested over Sh235 million in since 2019.
Court filings show the dispute, officially Fairways Hospitality Kisumu vs LBDA, is before the Kenya Business Premises Rent Tribunal.
On February 25, the tribunal issued interim orders restraining LBDA from locking the premises and allowing Nyakera access, but on March 9, execution of those orders was stayed pending a full hearing scheduled for March 16.
The confrontation drew political reactions with Nairobi’s Kileleshwa MCA Robert Alai accusing Nyakera of misrepresenting the dispute, citing unpaid rent and court directives to vacate.
Nyakera rejected these claims, insisting the matter is sub judice and questioning whether any legal authority justified the alleged attack.
LBDA emphasized its commitment to recovering all owed funds and condemned the reckless, unlawful use of firearms and attempts to incite ethnic division in the dispute.
Police in Kisumu had not publicly commented on the incident as of publication.
