A magistrate has ordered directors of Kwacha Group of Companies, a holding firm of businesses owned by the family of presidential aspirant Jimi Wanjigi, to appear in court over nonpayment of a Sh28 million debt.
The money is owed to a contractor, Pindoria Holdings Ltd, that renovated Kwacha Group's offices 10 years ago.
The directors, former Cabinet Minister James Maina Wanjigi and Mary Wanjigi, are expected to attend Milimani commercial court on May 12, 2022, for hearing of a request filed by the contractor seeking to lift veil of Kwacha Group of Companies.
The contractor intends to attach assets of the directors to offset the debt, which stemmed from renovations done by Pindoria at the offices of Kwacha Group in Nairobi in 2012. Kwacha defaulted on payment, leading to the court dispute.
In its court papers, Pindoria wants the directors of Kwacha Group to produce audited annual accounts for the last eight years and inventory of assets for purposes of inspection of its financial status and wealth.
Through lawyer Stephen Bundotich, the contractor also wants court to lift the corporate veil of Kwacha and make an order directing Mr and Ms Wanjigi to personally pay the debt.
"Pindoria is unable to trace the assets of Kwacha Group and I believe that its directors have deliberately caused the assets to be transferred to third parties with the sole aim of defeating any creditor's claim.
“I believe this is a proper case for the corporate veil to be lifted and for the said directors of the judgment debtor to be ordered to personally satisfy the decretal sum and in default execution to issue," says the contractor, through its top official Premji Pindoria.
He says the debt, plus costs of the court case, remains unsettled, despite repeated reminders and requests. The contract was worth Sh12.8 million, but the sum has increased to Sh28,805,031 due to interest.
The contractor sued in 2016 and obtained a favourable judgment on January 31, 2020. Kwacha appealed. On July 3, 2020, Judge Joseph Sergon directed Kwacha to deposit Sh15 million in an interest-earning account as a condition to suspend execution of the judgment, pending the appeal. Kwacha obtained stay orders but could not fulfil the condition, paving the way for the execution.
