The Kisumu's Lake Basin Development Authority (LBDA) mall has suffered yet another blow after the Kenya Revenue Authority (KRA) withdrew its interest in occupying it.
Managers of the mall which is at the center of a storm were heavily banking on KRA's occupation to attract more tenants, but the authority has said that its no longer interested.
This comes amid the management's apparent inability to woo tenants to occupy the multi billion facility, two years after the completion of its construction.
The pullout at the final stages of the deal was confirmed by LBDA Chairman Odoyo Owidi and Managing Director Raymond Omolo before the Senate Devolution Committee.
“KRA was to come here but the deal is almost off. We held meetings with government officials but we do not know what has happened,” said Mr Owidi, on Saturday.
This came after similar last minute change of heart by several other entities, including supermarkets.
The LBDA management is instead blaming the Kenya National Highway Authority (KeNHA) for delaying to complete Kisumu-Kakamega Highway, which would make the complex more accessible.
The mall has as well been under a prolonged probe by the Ethics and Anti Corruption Commission (EACC) which has detected some corruption on the cost of its construction.
Area leaders and residents have heaped pressure on the relevant offices to speed up its opening.