Jirongo, Atwoli in row over Sh100m loan

Thursday April 20 2017

Former Lugari MP Cyrus Jirongo

Former Lugari MP Cyrus Jirongo speaks at a fundraiser in Cheptiret-Nandet village in Uasin Gishu County on October 11, 2015. He and Francis Atwoli are involved in a row over a personal loan given to him by Mr Atwoli. PHOTO | JARED NYATAYA | NATION MEDIA GROUP 

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Central Organisation of Trade Unions Secretary-General Francis Atwoli should recover the Sh100 million he loaned to former Lugari MP Cyrus Jirongo from the Nairobi City County.

Mr Jirongo has, in court papers, said that though he had received a Sh100 million friendly loan from Mr Atwoli last August, which was payable in 50 days, with an interest of Sh10 million, the agreement had stated that the money would be recovered from the debt the county government owes the politician.

The county was supposed to pay Mr Jirongo’s company, Kuza Farms and Allied Ltd, following a consent order recorded before the Environment and Land Court on July 6, 2016, arising from a case filed in 2014.

Kuza Farms and Allied Ltd was to be paid Sh250 million as compensation for a 1.012-hectare plot in Nairobi.

“Though Kuza Farms and Allied Ltd is owed Sh250 million, the said amount has not been paid and I am not to blame for the delay and default by the Nairobi City County in remitting the money,” said Mr Jirongo in court papers.

He explained that as a director of Kuza Farms and Allied Ltd, he instructed the company lawyers to direct the Nairobi City County (judgment debtor) to pay Sh110 million directly to Mr Atwoli’s lawyers, in settlement of the loan claimed, and they did so through a letter dated October 13, 2016.

The Nairobi City County undertook in writing to pay Sh110 million to Mr Atwoli’s lawyers by October 28, 2016, which was within the agreed period.

“I deny allegations that I am in default of the agreement. Mr Atwoli should commence proceedings against the Nairobi County government for the sum of Sh110 million rather than victimise me when I have equally been prejudiced by the failure by the county government to honour the agreement to pay,” Mr Jirongo said in court papers.

He added that the suit against him filed by Mr Atwoli was premature and unmerited and should be stopped pending execution of the consent entered with Nairobi County Government.

“Nairobi County government issued an unconditional undertaking to Mr Atwoli’s advocates based on the decretal sum in the case with Kuza Farms and Allied Ltd.

"Mr Atwoli should move to enforce that undertaking before seeking to embarrass me,” said Mr Jirongo.

Mr Atwoli has, however, stated that the loan was taken by Mr Jirongo as his personal loan and not for and on behalf of his company, as alleged.