Former Labour Cabinet Secretary Kazungu Kambi has suffered a huge blow after a court declined to rule out a bankruptcy case facing him for failing to pay a Ksh 390 million loan.
Kambi had filed a petition asking for more time to service the loan owed to a local bank arguing that his appointment to the National Lands Commission (NLC) meant that he had a source of income and would afford to clear the debt in monthly installments. Reports indicate that Kambi's net worth is Ksh 50 million.
Kambi was initially appointed by President Uhuru Kenyatta as a member of the National Lands Commission in 2019 after stepping down from office as Labour CS due to graft claims.
He also sought for the case to be transferred from Nairobi to Mombasa. However, Justice Wilfrida Okwany of the Nairobi High Court stated that Kambi's application was not merited.
The judge added that Kambi had contravened the law by not filing the application within 21 days after being served with a demand notice.
"It was not disputed that the notice was served on the debtor on November 15, 2019, and the instant application filed on January 20, 2020, some 65 days after the service with the notice," judge Okwany stated.
With regards to the transfer of the case, the judge affirmed that the request would not serve any purpose for the case.
"Transferring this case to Mombasa will not serve any useful purpose. The application does not meet any condition set out for the transfer of suits.
"For the above reasons, I find that the application to set aside/strike out the Statutory Demand Notice is not merited and I therefore similarly dismiss it with costs to the Creditor," Judge Okwany stated.
Kambi, director of defunct River Oil company had borrowed Ksh250 million in 2007 along with two other associates. The sum however accrued to Ksh304 million in 2010.
This led the local bank, demanding an annual interest of 17 percent, to push the debt to Ksh 390 million.
