Hotel and conference bookings in Naivasha have dropped by more than 50 per cent following the downgrading of the town's status.
Naivasha is no longer on the same level as Kisumu and Mombasa towns.
Hoteliers and local leaders have now petitioned President Uhuru Kenyatta, saying hundreds of workers face the sack as bookings, mainly from Government workers and NGOs, had dropped sharply.
They said two years ago they were operating at 85 per cent but were now experiencing major losses.
In that time, per diem allowances for Government workers were same for those attending workshops in Nairobi, Naivasha, Kisumu and Mombasa. As a result, hotels were booked to capacity.
Former Naivasha MP John Mututho said there were ulterior motives in the downgrading of Naivasha town, which he said had good tourism facilities.
“We see an ulterior motive in the lowering of Naivasha's status. The town is second to none in terms of conference tourism,” he said.
Mututho said he would petition Parliament about the matter.