Businessman, William Osewe of the popular K'Osewe Ronalo Foods is set to lose his franchise in Kisumu County over a Ksh 350 million loan.
On Thursday, October 23, High Court Judge Lady Justice Tripsisa Cherere directed a local bank to put the Ksh 2 billion Blue Waters Hotel under auction.
The popular K'Osewe Ronalo located along Kimathi Street, Nairobi, will, however, continue operating.
Guda Osewe, William's son stated that attempts to save the hotel from auction did not wor out.
One of the attempts to save the facility was handing over management to a foreign entity.
In 2014, the businessman secured the Ksh350 million loan to expand his businessman with Kisumu being a major target due to the county's high growth rate.
Guda accused the bank of shortchanging them and refusing to support them with another loan after agreeing to an earlier proposal.
The proposal was based on having the management of the hotel taken over by Marriot Hotels, an international hotel.
"The bank became very hostile and they blocked all our attempts to rescue the franchise from auction," he lamented.
He added that the bank valued the property at four times the value of the loan.
K'Osewe is famous for African meals and attracts both high class and middle-class citizens.
