A dramatic property dispute in Kisumu has exploded into the open after a hotel owner accused powerful government figures of orchestrating a violent early morning attack on his business.
The businessman told journalists that armed individuals stormed his hotel at around 5:00am, forcing their way into the compound in what he described as a criminal attack linked to a bitter legal dispute over rent arrears.
According to the hotel owner, the dispute involves the Lake Basin Development Authority and dates back to the Covid period when the agency was led by Raymond Omollo as Chief Executive Officer.
At the center of the conflict are rent arrears amounting to KSh 5.4 million for a property where the businessman says he has already paid more than KSh 130 million in rent over the years.
He also claims to have invested more than KSh 235 million in developing and upgrading the property, which operates as a hotel in Kisumu under a 50 year lease agreement.
The businessman said he attempted to resolve the arrears dispute and settle the outstanding amount.
However, he alleges that officials from the Lake Basin Development Authority refused to engage further after he was informed that Raymond Omollo had developed personal interest in acquiring the property.
According to the investor, he was told directly that the government agency would no longer deal with him because he was “on the wrong side of government” and that he was “throwing stones while living in a glass house.”
Faced with the standoff, the businessman moved to court where he obtained orders restoring him to possession of the property.
He says the court orders were lawfully executed.
But shortly after that, the situation escalated dramatically.
The hotel owner now claims that individuals involved in the attack this morning gained entry to the compound through the adjacent LBDA Mall after being allowed into the mall premises before jumping over into the hotel grounds.
He said the attackers stormed the property while guests were still inside.
The businessman says he was able to defend himself and protect the hotel guests only because he is a licensed firearm holder.

The incident, he warned, raises serious questions about investor safety.
“If a lawful investor who has invested hundreds of millions can face such attacks, what happens to the many businessmen in this country who do not have firearms to defend themselves?” he asked.
The investor also addressed the ethnic undertones he says have surrounded the dispute.
He said he is a Kikuyu businessman from Murang’a who invested in Kisumu and obtained the property legally under a long term lease.
He insisted that if the government wishes to acquire the property, it must do so through lawful processes rather than intimidation.
In a direct message to PS Omollo, the businessman warned that political power is temporary.
“Power comes and goes,” he said.
“Just as I am now a former PS, you too will be a former PS someday very soon. The rule of law must prevail.”
The allegations now raise fresh questions about the relationship between state agencies, powerful public officials and private investors, particularly in high value properties tied to government institutions.
Authorities have yet to issue an official statement regarding the alleged attack or the claims made by the hotel owner.

