The Lake Basin Development Authority (LBDA) has clarified its position on claims linked to businessman Irungu Nyakera and the dispute over the Fairways Hospitality property in Kisumu.
In a press release dated March 11, LBDA stated that the relationship between LBDA and the Fairways Hospitality Kisumu (Fairways) was strictly commercial and governed by a lease agreement signed in 2019.
Additionally, LBDA noted that due to continuous rent defaults, Fairways entered into a voluntary Consent Agreement on June 3, 2025.
Fairways, however, breached the repayment terms and failed to acknowledge the repayment plans as stated in the Consent Agreement.
As of May 2025, Fairways had failed to pay the rent and had arrears exceeding Kshs. 25,900,000.00.
A lawful distress of rent was issued against Fairways by LBDA, and as a result, Fairways obtained an order from the High Court at Kisumu in HCC E028 of 2025 on February 12, 2026.
High Court Justice Alfred Mabeya dismissed the application by Fairways seeking to block the LBDA from attaching its property to recover the debt.
The court’s ruling affirmed LBDA’s contractual right to levy distress for rent to recoup arrears before the debt became irrecoverable.
After losing the case in the High Court, Fairways went to the Magistrates Court in Kisumu MCC E091 of 2026 and obtained ex-parte orders through material disclosure on the same day.
Chief Magistrate Benson Ireri set aside the orders on February 19, 2026, citing the tenant’s irregular conduct.
In order to obtain a mandatory order, Fairways, on February 25, moved the Business Premises Rent Tribunal (BPRT) in BPRT/E006/2006, suppressing material facts.
LBDA has therefore stated that it has no known relationship with any party called Irungu Nyakera, as the previous agreement was with an institution called Fairways Hospitality Kisumu Limited.
The Authority also insisted that Irungu Nyakera’s actions be investigated immediately because, despite having no ownership rights, he threatened to shoot anyone on the property.
In addition, the authority will continue to pursue all legal avenues as per the orders of the court.
Also Read: Why Irungu Nyakera Wants to Make Sakaja a One-Term Governor [VIDEO]
Irungu Nyakera Attack on Property Associated with LBDA
On March 11, former Principal Secretary Irungu Nyakera, using his Facebook account, shared that he had been attacked by more than 100 goons in his hotel in Kisumu.
According to Nyakera, the attack happened at five o’clock in the morning, and the perpetrators injured his employees, tied up his security guard, and damaged his property.
“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,” he said.
Nyakera also alleged that a similar incident occurred about three weeks earlier, when individuals he described as goons arrived at the premises, removed merchandise, and locked them out of the building.
Nyakera claimed to have taken over the property in 2019 and invested over Ksh235 million in its development. The property is connected to the LBDA, which is the landlord.
Also Read: Over 100 Goons Attack Irungu Nyakera’s Hotel in Kisumu; Staff Injured in Dawn Raid
Court Orders Reinstatement of Fairways Hospitality in Kisumu Hotel Dispute
According to Nyakera, in a court reinstatement, the Kenya Tribunal issued a mandatory order requiring the landlords of a hotel in Kisumu to return the property to Fairways Hospitality while the case was being heard in full.
On March 16, 2026, the Court will hold an inter partes hearing in the case of Fairways Hospitality Kisumu vs. Lake Basin Development Authority and Charcon Properties Limited.
