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High Court declares Cyrus Jirongo bankrupt over Sh700 million debt

Former presidential candidate Cyrus Jirongo was on Monday declared bankrupt by the High Court for...

A Commercial Court in Nairobi ruled in favour of the view that the former Lugari MPO be forced by the court to  pay the outstanding debts he owes people, including the Central organisation  of Trade Unions (Cotu) secretary general Francis Atwoli over Sh100 million.


Justice Olga Sewe of the Commercial Court in Nairobi ruled in favour of businessman Sammy Kogo and ordered that Jirongo estate 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,” Justice Sewe ruled.

He added: “The court further orders that an official receiver be appointed as a trustee of the estate of the bankrupt.”

The court heard that Mr Kogo allowed the accused (Mr Jirongo) to secure a loan from National Bank using his property as security.

Failed to pay


It was understood that the former presidential candidate failed to repay Mr Kogo.

The controversial property the court has ordered be placed under trusteeship include; Masole, Linsala Enterprise, Bain Enterprises, Saman Developer, Gileta, Koit Developers and Kenete Enterprises Ltd.

In the suit, the judge was told that after Jirongo defaulted, National Bank sold the properties at a public auction in 2009, after efforts to have Mr Jirongo pay back Sh60 million failed.

The suit between him and the bank began back in 2006. The eight companies sued Jirongo, National Bank and Bethlehem Trading East Africa for allegedly illegally benefiting from the securities given to him.

The search also revealed that all the companies had secured Sh20 million each.  Linsala on the other hand had secured Sh40 million.


On November 30, 2006, the High Court ordered that he should place Sh5 million as security within 30 days. He then entered into an agreement with Kogo that he would repay Sh700 million, the value of the eight properties.

The politician has been slapped with 180 days to repay the money in September 12, 2013, but he never did.

Mr Jirongo was missing in court at the time of the verdict. Mr Atwoli also sued the former politician asnd demanded a repayment of over Sh110 million debt.


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