Equity Bank Owner Faces Bankruptcy
The businessman has also been given notice of auction against his posh estate.
Munga, who is also one of the largest shareholders at Equity, has been sued for bankruptcy by a Mauritanian private equity firm, African Seed Investment Fund LLC, after he allegedly defaulted on a Sh60.7 million.
The prolific businessman had argued that the debt was owed by Frescho Limited but the court allowed bankrupt charges against Munga since he had full ownership of the company.
The Equity Bank founder had also complained to the court that the bankruptcy case was overstated and meant to embarrass him and push him into paying the disputed debt.
As the bankruptcy case is pending, Munga’s Sh400 Million estate is also facing auction over a different loan extended to him by Jamii Bora Bank.
The notice of auction was published by Galaxy Auctioneers on Thursday against Kasarani’s Stone Groove Estate.
The amount that the embattled tycoon owes to Jamii Bora was not disclosed.
Munga’s aide was Friday quoted by the Business Daily promising that the debt would be settled before the public auction event expected at the end of the month.
The aide also stated that the controversial debt emanated from a loan guarantee extended by the Equity Bank Chairman to a friend.
Munga faces a further Sh150 million debt from a Mr Joseph Muturi Kamau who sold his shares to the troubled tycoon.
Despite his debt crisis, Munga still maintains significant shareholding in some of Kenya's largest companies including at Equity Group, Britam, HF Group, Pioneer Schools, Equatorial Nut, among other companies.
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