Premium
Lamu West MP Stanley Muthama faces arrest over Sh2.3m debt
Lamu West MP Stanley Muthama at an Eldoret court on July 1, 2019, when he was charged with evading payment of Sh487,914,642 tax for the period 2013 to 2017.
The High Court in Nairobi on Friday issued a warrant for the arrest of Lamu West MP Stanley Muiruri Muthama over failure to pay a debt of Sh2.3 million.
The deputy registrar of the High Court directed the officers commanding Parliament and Lamu police stations to arrest the legislator and bring him to court over the debt his company - Stansha Ltd - owes Saunett Enterprises.
The debt arose from a transaction involving the supply of hardware goods and materials by Saunett, on diverse dates in the years 2014 and 2015.
The MP had agreed to settle the debt in installments and the warrant says he has paid Sh6.7 million but has failed to clear a balance of Sh2.3 million.
“Whereas the sum remains unpaid in respect of the said decree, these [orders] are to command you to arrest the said J/D (Mr Muthama) and unless they shall pay to you the sum of Kshs2,277,469 ... together with executing officer’s fees, if any, to bring the said judgment-debtor before court with all convenient speed,” the warrant reads.
Saunett Enterprises says in the application to the registrar that the MP has defaulted payment of the debt as directed by High Court judge Alfred Mabeya on November 8 last year.
Ms Alice Cheruiyot, the director of Saunett Enterprises, said through his lawyer Robinson Kigen that the court had warned that a warrant of arrest would be issued in case of default.
The agreement, which was recorded and adopted in court, provided that in case of default of any single instalment, the entire balance would fall due and a warrant of arrest against Mr Muthama would automatically ensue.
“Mr Muthama and his company, Stansha Limited, have persistently breached the consent (agreement). They have failed to pay a sum that was due on April 1, 2022,” Mr Kigen said.
The instalments agreement was adopted after Mr Muthama demonstrated that he had no capacity to offset the entire amount in a lump sum owing to financial hardships.
In an affidavit dated August 23, 2021, he informed the court that his company closed operations in 2019 as a result of Sh36.2 million tax arrears.
Mr Muthama added that he stood to suffer irreparable damage and that his reputation would be tarnished if he were to be arrested and committed to civil jail.
Stansha initially owed Saunet Sh17.3 million but it made partial payments. There was balance of Sh8.9 million as at October 14, 2022 and the legislator paid a further Sh6.7 million, remaining with a balance of Sh2.27 million.
