The Lake Basin Development Authority (LBDA) has issued a statement addressing a legal dispute with Fairways Hospitality Kisumu Limited, accusing the firm of manipulating the judicial system to evade more than KSh25 million in rent arrears.
In a statement released on Wednesday, March 11, the agency claimed that Fairways Hospitality Kisumu Limited, linked to Irungu Nyakera, has exploited the court system to frustrate the recovery of funds while continuing to occupy the property unlawfully.
According to LBDA, the dispute centres on a debt that has risen to more than KSh25.9 million following a history of default and breached settlement agreements.
The commercial relationship between the two parties was governed by a 2019 lease agreement, but LBDA said the tenant later fell into significant arrears, prompting the signing of a consent agreement on June 3, 2025.
Under the agreement, Fairways Hospitality admitted owing KSh27,431,473 and committed to a structured repayment plan.
However, LBDA claims the tenant failed to honour the agreement and has not paid any current rent since May 2025.
“The consent provided terms for payment of the rent then outstanding and the default provisions thereto. Despite this formal acknowledgement, Fairways systematically breached the repayment terms and failed to honour the repayment plan,” the statement read.
“Fairways has failed to pay any current rent from May 2025 to date, with total outstanding arrears now exceeding KSh25,900,000.”
According to LBDA, the legal battle intensified in early 2026, with the authority accusing the company of moving through multiple levels of the judiciary to stall eviction and the recovery of rent through distress.
On February 12, 2026, the High Court in Kisumu dismissed an injunction application filed by Fairways, ruling that LBDA had a contractual right to recover the arrears.
The authority further alleged that on the same day, the company sought ex parte orders from a Magistrate’s Court without disclosing the High Court’s dismissal.
LBDA also claimed that similar tactics were used at the Business Premises Rent Tribunal (BPRT) on February 25, 2026.
“LBDA wishes to highlight Fairways’ calculated misuse of the judicial system to frustrate the lawful recovery of rent. When LBDA commenced lawful distress for rent, Fairways rushed to the High Court at Kisumu in HCC E028 of 2025, obtaining ex parte status quo orders,” the authority said.
“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 orders granted by the High Court have not been set aside, appealed, reviewed or stayed.”
LBDA maintained that the lease was terminated on February 12, 2026, and that the tenant is currently a trespasser.
Furthermore, the Lake Basin Development Authority (LBDA) stated that it has no direct contractual relationship with Irungu Nyakera and condemned alleged threats involving firearms at the premises.
“The LBDA has no known relationship with any party called Irungu Nyakera, as the previous agreement was with an institution called Fairways Hospitality Kisumu Limited. We call upon the police to immediately initiate investigations into the actions of the said party, who has made declarations that he is ready to shoot anyone at the premises and who has confirmed that he fired two shots despite having no right to the property.
“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 further read.
On Wednesday morning, Nyakera allegedly fired warning shots at the LBDA property after goons stormed Fairways Hotel, Kisumu.
In a separate statement, Nyakera claimed that more than 100 goons attacked his hotel, damaged property, and injured staff members.
The former Principal Secretary (PS), who was at the hotel at the time, said he pursued the attackers after hearing the commotion and fired two warning shots into the air to scare them away.
“At 5:00 am today, over 100 goons attacked my hotel in Kisumu, damaging property and injuring our staff, including tying up the security lady. Upon hearing the commotion, I quickly went after them, shooting twice in the air as they fled,” he said.
Following the incident, Nyakera claimed he called the Officer Commanding Station (OCS) seeking backup, but officers did not arrive.
The Democracy for the Citizens Party (DCP) politician said he later sent the OCS a message warning that he would shoot anyone who stepped onto his property.
“I called the OCS and asked for backup, but an hour later, when no backup was forthcoming, I sent him a message that I intended to shoot anyone stepping onto my property. I hope he shared the message in their security WhatsApp group,” he alleged.
Nyakera also claimed that a similar incident occurred weeks earlier when alleged goons, accompanied by the landlord, stormed the premises, carted away merchandise, and locked them out of their own property.
He further alleged that a senior government official had instructed that he should not be a tenant in a government building because he is in the opposition.
Nyakera said he took over the premises in 2019 and holds a 50-year lease on the property, claiming that he has invested more than KSh235 million in the hotel.
“I took over these premises as a shell in 2019 and have invested over KSh235 million, as per court records. I hold a 50-year lease on this property. If he indeed wants to take over the property, let him come, we do a valuation, and I sell it to him,” he said.
