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Trader seeks Lamu West MP’s arrest over Sh10m debt default
Lamu West MP Stanley Muthama at the Eldoret chief magistrate's court on July 1, 2019, where he was charged with failing to remit Sh487 million in taxes. PHOTO | JARED NYATAYA | NMG
A businesswoman wants Lamu West MP Stanley Muiruri Muthama arrested and detained at a civil jail for defaulting payment of a Sh10.9 million debt accrued seven years ago involving his company.
Ms Alice Cheruiyot has asked court to issue a warrant of arrest against the lawmaker, in a commercial dispute that has revealed financial difficulties facing the politician who three years ago was fighting a Sh487 million tax evasion case in Eldoret.
Court papers indicate that his monthly take-home was Sh28,000 as at August 2021 due to deductions for loans advanced by a sacco.
According to the Salaries and Remuneration Commission (SRC) the basic salary of a member of the National Assembly is Sh621,250 plus a number of allowances, such as sitting (House and Committee) and travel, and mortgage.
Ms Cheruiyot, director of Saunett Enterprises, in an application filed yesterday before the Milimani Commercial Court Deputy Registrar, says Mr Muthama has breached an agreement that required him to make a monthly instalment of Sh750,000 until the debt is settled.
The agreement, which was recorded and adopted in court on September 30, 2021, provides that in case of default of any single instalment, the entire balance will fall due and a warrant of arrest against Mr Muthama will automatically ensue.
"Mr Muthama and his company, Stansha Limited, have persistently breached the consent (agreement). They have failed to pay a sum of Sh750,000 that was due on April 1, 2022," says the businesswoman through her lawyer Robinson Kigen.
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 hardship.
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.
He added that the Covid-19 pandemic had worsened his state and his net salary was Sh28,874 which was not sufficient to sustain him and his family.
He annexed his payslips, bank statement and correspondences from the Kenya Revenue Authority to support his request.
Mr Muthama added that he stood to suffer irreparable damage and his name would be tarnished if he was to be arrested and committed to the civil jail.
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.
Stansha initially owed Saunett Sh17.3 million but it made partial payments.
Failure to pay the balance prompted Saunet to sue leading to a judgment in its favour on December 4, 2020.
