The Kenya Revenue Authority (KRA) and Kenya Tourist Development Corporation (KTDC) are involved in a tussle that could see the government lose the multi-million Sunset Hotel in Kisumu.
Drama unfolded in the Lakeside city yesterday as auctioners moved in to seize the posh government-owned property in Kisumu's Milimani area.
Acting on orders from KRA, the auctioneers descended on the property in a bid to recover accrued VAT amounting to Sh18 Million.
The management of the hotel, led by the manager Joseph Oduor made frantic efforts and calls to save the multi-million facility, claiming that it was a small matter that did not warrant the move by KRA.
A senior manager at the hotel who spoke to Kenyans.co.ke on phone, confirmed that business was back to normal at the facility on Friday morning but discussions were ongoing to sort out the issue.
She confirmed that the hotel owes some money to KRA but declined to disclose how much.
The hotel is owned by the Kenya Tourist Development Corporation that is responsible for the promotion of tourism.
Kisumu County Government's legal team moved in to temporarily block the auctioneers.
