Nairobi businessman Brian Yongo Otumba has applied for a warrant of arrest against former cabinet minister Cyrus Jirongo for failing to repay a loan valued at Sh 20 million.
Jirongo is required to appear before court on March 27 to explain why Yongo should not be allowed to attach and auction his property to recover the outstanding payment.
However, his presence in court will be dispensed if the money is paid together with interest, cost of execution and court collection fees are lodged in court before the said date.
It is alleged that Yongo entered into an agreement with Jirongo of the loan advancement in October 2014 which was to be repaid within a period of six months incurring 7.5 percent interest per month.
In November 2015, court had ruled that the decretal sum of Sh 25million be settled in three instalments.
The first instalment of Sh 5million was too be paid on or before October 15, 2015, the second one of Sh 5 million was to be paid on or before October 31, 2015.
The last one of Sh 15 million was to be paid within 60 days of the filing of the consent. It was agreed that in failure to pay any of one of the three installment, the execution would be issued immediately for the full decretal amount.
However, Jirongo paid the first two installments and defaulted on the consent order sanctioned by the High Court’s Deputy Registrar.
The court had also directed Jirongo to pay Yongo costs to be agreed or taxed in the agreement.
Through a letter dated 6th March 2016 to Yongo, Jirongo, through his lawyer said that he was not in apposition to settle the decretal amount as promised.
The letter further indicated that Yongo would be paid the decretal amount due from the proceeds realized earliest out of land transactions that would be pursued by Jirongo and his companies.
Jirongo’s lawyer had indicated that they anticipated the first of the land transaction to be completed within the next thirty days from March 16, 2015