Cyrus Jirongo Declared Bankrupt by the Court
Former Lugari MP Cyrus Jirongo has been declared bankrupt by a Kenyan court after he has been unable to pay hundred of millions shillings in debt.
Commercial Court judge Olga Sewe on Monday made the ruling, following a case in which businessman Sammy Kogo had sued to have Jirongo’s estate put under receivership after the later failed to pay a loan at National Bank of Kenya which he secured using Kogo’s property as security.
Kogo, through eight of his companies (Masole, Linsala Enterprise, Bain Enterprises, Saman Developer, Gileta, Koit Developers and Kenete Enterprises Ltd) sued Jirongo, and the later was ordered to make payments within 180 days from the September 12, 2013 initial judgement. Jirongo however failed to make the payments and Kogo’s properties were eventually actioned off by National Bank to repay the loans.
The court herd that Jirongo then entered into an agreement to pay Sh700 million to Kogo (the valued of the auctioned properties) but the former presidential candidate failed to honor the agreement.
The judge has appointed a receiver as a trustee of Jirongo’s estate.
“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… “The court further orders that an official receiver be appointed as a trustee of the estate of the bankrupt,” ruled Judge Sewe.
Jirongo, who rose to fame as a leader for Youth for KANU ’92 (YK ’92) leader ahead of the first multiparty elections in Kenya, represented Lugari as MP for two terms, 1997-2001 and 2007-2012. He vide for the presidency in the August 8th, 2017 general elections and garnered about 11,000 votes (0.07% of the total votes).