The Lake Basin Development Authority (LBDA) has accused Irungu Nyakera’s Fairways Hotel of chronic rent default and attempting to manipulate the judicial system in a dispute over leased property in Kisumu.
In a statement on Wednesday, March 11, 2026, LBDA said the dispute stems from a commercial lease agreement signed in 2019 between the authority and the hospitality firm. According to the agency, Fairways admitted owing Ksh27.4 million in rent arrears through a consent agreement signed on June 3, 2025, but subsequently failed to honour the repayment terms.
LBDA said the tenant has also failed to pay any current rent since May 2025, with total outstanding arrears now exceeding Ksh25.9 million.
This comes after Nyakera claimed that over over 100 goons attacked the facility in Kisumu, damaging property and injuring staff members.
“Upon hearing the commotion, I quickly went after them, shooting twice in the air as they fled. I called the OCS and asked for backup, but an hour later, when no backup was forthcoming, I sent him a message that I intend to shoot anyone stepping into my property. I hope he shared the message in their security whatsapp group,” Nyakera stated.
According to a police report obtained by Business Today, the alleged goons made away with 4 computers including 4 CPUs, one printer, two tablets, assorted drinks at the counter, one personal laptop.
“It was reported through mobile phone no 0716320xxx by one Irungu Nyakera that robbers armed with crude weapons invaded had invaded his hotel ie Fairways located at Lake basin at around 0520 hrs. It was a gang of about 100 men who were using morterbikes and they attacked the security guards from lintum system security company who were manning the main gate,” the report stated.
“They further proceeded to the main hotel arena and maliciously damaged the properties on sight including window panes and made away with 4 computers including 4 cpus, one printer, two tablets, assorted drinks at the counter, one personal laptop make hp. They went ahead and smashed both rear and front windscreen of motor vehicle reg. KDC970Y make Landcruiser. In the process the owner who was around and a licensed firearms holder fired two rounds in the air to scare them away. Officers currently at the scene and value of the stollen items and damages not yet established.”
Nyakera had also claimed that three weeks ago, unknown people came to the premises and carted away merchandise, and locked them out of the premises.
However, the authority has claimed the tenant had repeatedly sought court orders to block efforts to recover the debt.
According to LBDA, the company moved to the High Court of Kenya in Kisumu in case HCC E028 of 2025, where it obtained temporary orders stopping enforcement measures. However, the High Court later dismissed Fairways’ application for an injunction on February 12, 2026, affirming LBDA’s contractual right to levy distress for rent to recover the arrears.
“In this case, the applicant willingly entered into the Consent Agreement on the mode of repayment of the rental arrears. It was agreed by the parties that in the event of default, ‘the entire balance becomes immediately due and payable and the Authority may pursue any remedies available under the Lease and applicable law’. There has now been default. The 1st respondent is a stable institution with sufficient capacity to compensate the applicant in the event that it suffers loss. The applicant fails also on the second limb of irreparable harm,” Justice Alfred Mabeya ruled.
The authority said the same day the ruling was issued, Fairways moved to the Kisumu Magistrates Court and obtained fresh ex-parte orders without disclosing the High Court decision. The magistrate’s court later set aside those orders on February 19, 2026, citing lack of jurisdiction and irregular conduct by the tenant.
“I find that the orders issued on 12/2/2026 and 13/2/2026 seem to impede the execution process that was allowed to proceed in the high court matter which the counsel for the defendant has alluded to and therefore the orders issued herein were obtained irregularly without disclosure of material facts by the plaintiff/applicant, these orders therefore cannot be sustained. In the premises I discharge the orders forthwith. I therefore direct the preliminary objection to be heard first,” the court ruled.
LBDA further alleged that the company later approached the Business Premises Rent Tribunal, where it again obtained orders through what the authority described as “suppression of material facts.” The tribunal subsequently stayed those orders on March 9, 2026 after being informed of the previous court rulings.
The authority said the landlord-tenant relationship was formally terminated on February 12, 2026, following termination notices issued in line with the lease agreement and court decisions.
“As things stand, Fairways is an unlawful occupant and is trespassing on LBDA premises,” the agency said.
LBDA also distanced itself from businessman Irungu Nyakera, saying the original agreement was strictly with Fairways Hospitality Kisumu Limited and that it has no relationship with Nyakera.
The authority further called on police to investigate claims that an individual associated with the premises allegedly threatened to shoot people and discharged a firearm at the property.
LBDA condemned what it described as attempts to incite ethnic divisions and the unlawful use of firearms in connection with the dispute.
The agency said it remains committed to recovering all outstanding rent owed and will continue pursuing legal avenues to safeguard public resources.
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