Former Presidential candidate Cyrus Jirongo has been declared bankrupt after the Court found out that he is unable to service his debts.
High Court Judge Olga Sewe declared Jirongo bankrupt after he failed to pay a total of Ksh700Million to companies he owed money.
The ruling was made by Commercial Court judge Olga Sewe who ruled in favor of businessman Sammy Kogo, Mr Jirongo’s creditor, and ordered that the latter’s estate should be placed under receivership.
“Having heard the petitioner and having read the creditor’s petition, and having seen the exhibits, the court hereby orders that Shakhalanga Khwa Jirongo be adjudged bankrupt by virtue of the bankruptcy order,” ruled Justice Sewe.
“The court further orders that an official receiver be appointed as a trustee of the estate of the bankrupt.”
Mr Kogo however said he had allowed the former Presidential aspirant to secure a loan from National Bank using his properties as security but has since failed to repay the lender.
In the suit, the judge heard that after Jirongo defaulted, National Bank sold the properties at a public auction in 2009, after efforts to have the former presidential candidate pay back Sh60 million failed. The suit between him and the bank began back in 2006 and he was sued by all eight companies.
At the centre of the battle between the politician and the businessman are properties held under Masole, Linsala Enterprise, Bain Enterprises, Saman Developer, Gileta, Koit Developers and Kenete Enterprises Ltd.
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