The High Court yesterday declared former presidential candidate Cyrus Jirongo bankrupt after he failed to pay a Sh700 million debt.
Justice Olga Sewe, of the commercial division, ordered an official receiver appointed as trustee of Jirongo’s estate.
This is after it was proven Jirongo could not settle his debt to businessman Sammy Kogo.
Kogo, through his eight companies, petitioned the court to issue bankruptcy orders against Jirongo.
The order was granted on September 29, 2017.
Jirongo secured a loan from the National Bank of Kenya using Kogo’s property, but he failed to repay.
According to court papers, Jirongo was to settle his debt within 180 days.
Subsequently the bank moved in and auctioned the property held as security.
Jirongo entered into an agreement to pay Sh700 million, the value of the property.
He failed to honour the agreement within the stipulated period, causing the appropriator of the suit property to institute court proceedings.
The property was held in the names of Masole, Bain Enterprises, Gileta, Koit Developers, Saman Developers, Kenete Enterprises and Linsala Enterprise Ltd.
During the hearing, Jirongo failed to make an appearance or file a statement of defence and the judgment was made in favour of Kogo.
The former Lugari MP has also been sued by Cotu boss Francis Atwoli for failing to pay back Sh110 million.
Jirongo had in October last year made an undertaking that he would pay the money which Atwoli had lent him.