20-year lodge row haunts Kajiado as unpaid debt balloons to Sh1b

All that remains of Kenya's once-crowned safari tourism jewels, Amboseli Lodge and Kilimanjaro Safari Club in Kajiado County. [Francis Ontomwa, Standard] Deep in the heart of the sprawling Amboseli ecosystem lie two ghostly shells of what were once Kenya's crown jewels of safari tourism, now sitting in ruin. On site, faded signboards, collapsing walls and an eerie silence haunt the once leafy courtyards, Amboseli Lodge and Kilimanjaro Safari Club, two iconic lodges just 800 feet apart. It's been more than two decades since the lodges were brought to their knees, marking the beginning of one of Kenya's longest-running and most consequential legal battles. At the center of the saga is the County Government of Kajiado, now facing a staggering debt of Sh1.027 billion in accrued interest and penalties, an amount that continues to grow, stemming from a breach of contract. This legal wrangle traces back to a seemingly straightforward lease agreement signed in 1968 between the then Olkejuado County Council and Kilimanjaro Safari Club. The contract granted the company rights to two prime parcels of land within the iconic Amboseli National Park. By 1973, under the stewardship of the patriarch, the late Rajnikant Desai, the Club had developed the Amboseli and Kilimanjaro Safari Lodges, employing over 1,000 people, most of them drawn from local communities. Among other things, the lease agreement was explicit: no other hotel or lodge was to be licensed within a two-mile radius of the Club's property, with Ol Tukai Camp being the sole permitted exception but strictly to operate self-service bandas. However, in the ensuing decades, this exclusivity clause was violated repeatedly, as rival lodges were licensed and operationalized within the restricted zone, diluting the Club's market position and undermining the contractual assurances. Confiscated property Tensions came to a head in 2006 when auctioneers, allegedly acting on behalf of the County Council, forcefully entered the lodge premises, confiscating property and reportedly injuring the late Desai and his wife on the pretext of collecting rent. It was this violent distress that triggered a fierce legal resistance by Kilimanjaro Safari Club, seeking justice and restitution. According to the lease, the matter was referred to arbitration. Senior Counsel John Ohaga, acting as arbitrator, ruled in November 2009 in favour of Kilimanjaro Safari Club. The award was significant: Sh75.3 million in special damages, US$ 2.8 million in commercial losses and Sh1 million in general damages. Additionally, the Council was instructed to shoulder 60 per cent of the legal costs. The High Court, through Justice Eric Ogola, adopted the arbitration award in 2011, rendering it an enforceable judgment of the court. However, more than a decade later, that judgment remains unfulfilled, with interest accruing at an alarming rate. Today, senior officials from the County Government of Kajiado are staring at contempt charges for failing to appear in court last week to explain how they intend to clear the ballooning debt owed to Kilimanjaro Safari Club Limited, a spiraling burden on taxpayers. Kajiado Governor Joseph Ole Lenku, Treasury Chief Officer Morris Kaaka and Finance Executive Michael Semera are now at risk of being cited for contempt of court for disobeying several court orders. When the matter was mentioned before High Court Deputy Registrar E C Chelule, the hotel claimed that the county government had failed to respond to demands for payment. A possible resolution came in 2021, but the County paid Sh100 million and defaulted on the remaining Sh225 million.

20-year lodge row haunts Kajiado as unpaid debt balloons to Sh1b

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20-year lodge row haunts Kajiado as unpaid debt balloons to Sh1b

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