Murang’a Governor Mwangi wa Iria risks arrest and committal to civil jail for failure to settle Sh6.5million arising from a bank loan and overdraft facilities he secured from CFC Stanbic Bank in 2011.
He is now required to appear before the Milimani Commercial Courts in Nairobi on March 13 to explain why the bank should not be allowed to recover the money. The application was made by Kairu and McCourts Advocates on behalf of the bank and the notice to show cause was issued on January 26.
The politician had entered into an agreement with the bank on September 29, 2011, for a Sh2.5million loan that was repayable in 60 monthly installments. He also entered into another agreement on October 17,2011 for Credit Card facility of monthly limit of Sh800,000.
The bank had sued the Governor, who is also known as Francis Maingi Mwangi, on June 17, 2014, for breach of the loan facilities through defaulting. It is demanding Sh6,581,563/70.
