Tourism Finance Corporation (TFC) has warned investors against bidding for development of a Kisumu hotel at the centre of a tussle between the agency and the county government.
Managing director Orumoi Jonah said the advertisement by the county calling for partnership in redeveloping of Sh300 million Sunset Hotel in Kisumu was irregular.
The hotel has two shareholders — the TFC, which has the majority stake at 95 per cent, and the Kisumu county government that holds the rest. The TFC has several hotels countrywide that are set for privatisation.
“We want investors to be very cautious about the entire process, which is irregular as none of the other shareholders was involved in this process,” said Mr Orumoi.
This came as governor Anyang Nyong’o claimed on NTV that Kisumu has every right over the hotel given that it is located in the county where taxes from the residents were used in putting it up.
Last Friday, the county government placed an advertisement in the newspapers calling for expression of interest in public-private-partnership in upgrading the facility.
The TFC on Friday wrote to the county informing it to put on hold its plan and instead meet to agree on the way forward.
“We have communicated to the county as we want to resolve this matter in a proper way. We are in agreement that the hotel requires some new development. We only differ with the county on account that the process that they are using is irregular,” he said.
The hotel, which seats on a four-acre prime plot in Kisumu, has been in existence since 1967.