MP must pay half of Sh9.2 million owed to Ecobank within three weeks to avoid reinstatement of bankruptcy order
The High Court has suspended a bankruptcy order issued against Masinga MP Joshua Mwalyo last month.
Justice Njoki Mwangi lifted the order on condition that the MP pays half of the Sh9.2 million plus interest he owes Ecobank within three weeks.
The court adjudged Mr Mwalyo as bankrupt over the failure to pay the debt to the lender.
The judge noted that the debt has been outstanding since November, 2013, and that only a small fraction of it has been settled.
"I hereby grant a conditional stay of execution of this court's judgment delivered on November 14, 2024, subject to the debtor paying the creditor half of the decretal sum with interest, within 21 days from today," said the judge.
The court said failure to comply with the condition will result in automatic reinstatement of the earlier order. The court directed the case to be heard on February 12, 2025.
The lender sued the MP over the failure to pay the amount owed by Seven Fourteen Limited, a firm where the MP is a director.
“Joshua Mbithi Mwalyo is hereby adjudged bankrupt and a bankruptcy order is made against his estate. The official receiver or a person nominated by the official receiver, is appointed as the bankruptcy trustee in respect of the debtor’s property,” said the judge in the ruling.
Among the grounds to disqualify a person from being elected a member of Parliament if one is undischarged bankrupt, as per article 99 (2)(f) of the constitution. But this can only happen if the person has exhausted all appeal or review mechanisms.
The bank told the court that Mr Mwalyo was sued as one of the defendants in a case between the bank and Seven Fourteen limited, and a ruling delivered on November 5, 2013.
