The government-owned Kisumu’s Sunset hotel risks being auctioned by the Kenya Revenue Authority thanks to an accrued debt of Sh18 million.
According to Kisumu county lawyer Amos Omollo, auctioneers are expected to effect the KRA agency notice on the tax arrears.
Reports indicate that Tourism Finance Cooperation is the majority shareholder of the hotel while the county government controls a 5% stake.
Omollo said the auctioneers plan to sell off the movable assets in the hotel.
“So far, we have talked to the auctioneers and agreed that the matter will be resolved amicably in the next 10 to 15 days.”
He went on to add that they further agreed that no goods should be collected from the hotel until the matter is resolved.
The lawyer said there was an allegation that VAT collected by the hotel had not been remitted to the taxman.
“We are sure that the undisputed amount is Sh11 million. The Sh18 million is as a result of penalties,” he told journalists on Thursday, May 18.
Reports indicate that the hotel’s accounts will be reconciled to figure out payments that may have been made in the period of the KRA’s claim.