CS Kazungu Kambi fights bankruptcy case

NAIROBI: The High Court has temporarily halted a financial institution from pursuing suspended Labour Cabinet Secretary Kazungu Kambi over a Sh300 million debt.

Justice Eric Ogola stopped Development Bank from pursuing Mr Kambi for the debt until his application challenging being declared bankrupt is determined.

Ogola gave Kambi the relief after he told him that he was not liable to the debt owed to the financial institution. The suspended CS told the court that he did not know of any proceedings against Riva Oils Company, which he allegedly managed with two other directors Ezekiel Karisa and David Tuitoek.

The court heard that the suspended CS was further not aware that the court had directed the trio to settle the loan. In the case the court heard that Riva Oils Company owed Development Bank Sh304 million.

"A temporary stay of execution of the judgment delivered on April 2, 2013 and any subsequent proceedings is hereby issued pending the hearing of this application on May 18. By that time all the parties shall have responded to this suit," Ogola ruled.