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Hoteliers based in Naivasha have warned of low bookings following the government’s decision to downgrade the town’s status to a municipality.

The move forced the Salaries and Remuneration Commission (SRC) to lower daily subsistence allowances rates for civil servants, which has in turn led them to prefer other places like Mombasa and Nakuru City which attracts better per diem.

Through the Kenya National Chambers of Commerce and Industry (KNCCI), the Naivasha Hoteliers Association chairperson Rahab Mwihaki says the per diem review by SRC has resulted in a 20 per cent drop in bookings, with tens of workers likely to be laid off.

“We are appealing to the President to intervene as we have invested millions into constructing hotels but all workshops are now destined to Nakuru due to the better per diems,” Mwihaki said.

Mwihaki, said the SRC decision had locked tens of hoteliers out of business, dealing a major blow to Naivasha with over 10,000 rooms and considered second to Mombasa in terms of conferencing.

With Naivasha being ranked among municipalities and Nakuru town listed among cities, there has been a paradigm shift in the civil service who have now pitched camp in Nakuru town for trainings over allowances.