Kisumu’s Sunset Hotel has sent all its staff members home following reported prolonged financial difficulties.
In a letter sent to the Ministry of Labour on Friday, the hotel management note that it has rendered its workers redundant due to “constant reduction in the flow of business.”
The more than 50 employees who were still working at the struggling hotel were declared redundant effective May 31.
Speaking on the abrupt decision, the facility’s general manager Joseph Oduor mentioned: “The hotel has been struggling for quite a while. We have not paid our worker’s salary since November last year.”
It has been noted that the hotel has been making losses for over 15 years.
However, the manager affirmed that the hotel will not be closed down.
According to records, the hotel which is 40-year-old, it is owned by both the national and county government.
In October last year, Auditor General Edward Ouko declared the facility technically bankrupt, having accumulated losses amounting to over Ksh117 million at the end of June 2017.
Mr Ouko also indicated a negative working capital of Ksh27 million. It was also cited for being in breach of Section 41(1) of the Public Audit Act after failing to pay audit fees for the last 13 years, failing to remit statutory deductions to various bodies, among other breaches.
Mr Oduor cited failure to upgrade the hotel to current standards in the hospitality industry as the root cause for its downfall.