Kanu Executive Director George Wainaina risks 4 months jail term over Sh113 million debt after the High Court ordered him to pay businessman Clement Aboge.
This comes after Justice Francis Mabeya said in default of any one monthly instalment, the entire sum will become payable immediately and the warrants of arrest issued on November 19, 2020 will be revived for execution forthwith.
The High Court judge also stated that Wainaina is required to deposit Sh30 million immediately and pay Sh20 million monthly between March and May. The balance is to be paid by June 30.
“It is not in doubt that the decretal sum of Sh113,005,365 is a colossal amount of money.
This arose from the judgment entered against the Judgment Debtor on February 6, 2019 on account of an arbitral award.
The Judgment Debtor is ready and willing to settle the amount saved that he is not able to do so in lump sum,” he said.
The warrants of arrest were delayed by the judge to allow Wainaina, a former chief of staff for the Nairobi City County government, to comply with the court’s payment schedule.
Wainaina requested that the court to enable him to liquidate the debt by making a one-time payment of Sh1 million within seven days, followed by monthly payments of Sh250,000 until the debt was paid in full.
He told the court that he gets a net salary of Sh299,999 per month, of which he planned to set aside Sh250,000 each month to pay off the decretal sum.
Wainaina is also in the process of disposing of his properties, including nine parcels of land in Kijabe (five plots), Nakuru (two plots), Nyandarua (one plot) and Konza Malili (one plot). He plans to use the proceeds to offset the debt.
He’s also open to transferring the properties to Aboge as part of the loan repayment. He attached his pay stub as well as title paperwork for several properties he allegedly owns, but he did not include the required searches.
He claimed that he intended to sell the properties in question and utilise the earnings to pay off the debt.
Wainaina said that if he is incarcerated for non-payment of the debt, he will be unable to carry out the settlement agreement, which he hoped would allow him to pay the total amount by June 30.
On February 6, 2019, the debt was recognised as a result of an arbitration award. Wainaina had previously stated that the delay in payment was because of the Covid-19 outbreak affecting his financial situation.
He had also stated that he was ill and that hospital expenditure had drained the monies he had set aside to repay the loan.
