Governor Wa Iria faces jail for failure to repay Sh6m loan

Murang’a Governor Mwangi Wa Iria risks being jailed if he fails to pay a loan of over Sh6 million within a week.

A magistrate’s court in Nairobi has ordered the governor to appear in court on March 13 and show cause why he should not be arrested and committed to civil jail for defaulting in paying a loan he took from CFC Stanbic Bank Limited in 2011.

The governor is required to pay the amount owed to the bank together with interest, cost of execution and court collection fees, totalling Sh6.6 million before March 13.

Stanbic Bank through Kairu and McCourt Advocates said the governor had “defaulted on repaying a personal loan, making payments on his credit card and had overdrawn his current account.”

OVERDREW ACCOUNT

The lawyers stated that the governor opened a current account on September 29, 2011 which he overdrew by Sh22,497.

Mr Wa Iria also obtained a personal loan of Sh2.5 million which he was to re-pay in 60 monthly instalments of Sh67,371 each.

He also got a credit card with a monthly limit of Sh800,000.

“The defendant, in taking on each bank facility, agreed to be bound by the terms and conditions of the facilities and that should he default and/or breach the said terms and conditions, the total sums of each banking facility and the interest that would have accrued would become payable on demand,” read the application.

The bank has also requested for judgement against Mr Wa Iria after he failed to appear in court and file a defence to the complaint filed in 2014.