Former MP Jirongo declared bankrupt

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Former MP Jirongo declared bankrupt


Mr. Cyrus Jirongo. photo file | nmg

Summary

  • High Court Judge Olga Sewe concluded that Jirongo was unable to pay 700 million shillings he owed eight companies.
  • This means that Mr. Jirongo, who was running for president in the August 8 general election, cannot run for such a position because the law does not allow a bankrupt person to hold public office.
  • It also means that any property belonging to Mr. Jirongo can be taken over by the credit manager for liquidation in order to settle the outstanding debts.
  • The ruling also restricts Mr. Jirongo to handling only the cash he needs for subsistence, accommodation and transportation.

Former Lugari MP Cyrus Jirongo has been declared bankrupt after the court found him unable to honor his debts.

High Court Judge Olga Sewe concluded that Jirongo was unable to pay 700 million shillings he owed eight companies.

This means that Mr. Jirongo, who was running for president in the August 8 general election, cannot run for such a position because the law does not allow a bankrupt person to hold public office.

READ: Jirongo land auction fails because bids are insufficient

It also means that any property belonging to Mr. Jirongo can be taken over by the credit manager for liquidation in order to settle the outstanding debts.

The ruling also restricts Mr. Jirongo to handling only the cash he needs for subsistence, accommodation and transportation.

Mr. Jirongo went bankrupt in a lawsuit filed by a group of companies including Masole Ltd, Baia Enterprises, Gilera, Koti Developers, Saman Developers, Kenete Enterprises, Marimio Enterprises and Linsala Enterprises.

The court also ordered that an official receiver be appointed as trustee of Mr. Jirongo’s estate.

Bankruptcy laws provide that said official receiver manages the property with a view to repaying monies owed.

Mr Jirongo got into trouble after securing a 700 million shillings loan from the National Bank of Kenya using properties registered in the name of the companies.

He then failed to pay the loan, which led the bank to sell the properties on May 22, 2009 at public auction.

Mr. Jirongo then made an agreement with businessman Sammy Boit arap Kogo, owner of the companies, to pay him 700 million shillings, the market value of the said properties.

“This was compensation for the loss caused to the companies whose assets had been sold,” Kogo said in court documents.

Mr. Jirongo again failed to pay the amount within the agreed timeframe, forcing Mr. Kogo to take action against him for the payment of said debt.

Mr. Jirongo had not defended or filed a response in the case demanding payment of 700 million shillings plus interest.

A judgment was then handed down against the former MP in 2014, for the sum of 700 million shillings plus interest as well as the costs of the lawsuit.

But Mr. Jirongo did not pay the requested sum, prompting the companies to file for bankruptcy against him.

They also asked for an order for her estate to go to the bankruptcy trustee – a prayer that has now been answered.

Mr. Jirongo is currently fighting several cases against creditors in various courts.

READ ALSO: Atwoli Brings 110 Million Shillings Debt With Jirongo To Court


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