Companies

State hotel faces auction over unpaid Sh18m tax

The Sunset Hotel in Kisumu County. FILE PHOTO | NMG
The Sunset Hotel in Kisumu County. FILE PHOTO | NMG 

The taxman has given a government-owned Kisumu hotel 10 days to pay up Sh18 million or risk being auctioned.

The Kenya Revenue Authority (KRA) is demanding the tax arrears from Sunset Hotel which was once a premium facility in the lakeside city —but now risks closure owing to accumulated debts.

The hotel manager Joseph Oduor Thursday said a request has been sent to the Treasury for permission to withdraw money from the Tourism Trust Fund to repay the debts.

“The process of getting money is taking time but the auctioneers who are the KRA are moving faster. We are asking them to give us some time to source the money,” said Mr Oduor.

Upcoming hotels in Kisumu have given Sunset serious competition, which has contributed to the loss of business.

“Ever since the hotel was built in 1977, it has never had any refurbishment. Urgent action needs to be taken for it to be competitive to attract more clients and bring it back to its lost glory,” he said.

He said the hotel makes revenue of Sh2 million per month compared with a recurrent expenditure of Sh5 million.