Businesswoman seeks arrest of Lamu West MP over Sh7.1 million car debt

Lamu West MP Muthama at the Eldoret Chief Magistrate's Court where he pleaded not guilty to 13 counts of failure to pay tax and fraud. July 1, 2019. [File, Standard] A Nairobi businesswoman has moved to court seeking the arrest of Lamu West Member of Parliament Stanley Muthama for allegedly failing to settle a Sh7.1 million debt. The debt is said to date back nearly a decade, stemming from the purchase of a commercial vehicle. Ms Yvonne Njoki Njiru, the proprietor of Newday Motors Limited, has asked a Milimani court to issue a warrant for the MP's arrest, accusing him and his company, Stansha Limited, of defaulting on payment for an Isuzu ELF truck sold to them in June 2016. The matter escalated after Principal Magistrate H.M. Ng'ang'a ruled in Njiru's favour on April 23, 2025, issuing a decree that held both Mr Muthama and his company jointly liable. The decree followed the striking out of the MP's defence, which the court found to be inconsistent and lacking supporting evidence. Mr Muthama has strongly contested the decision, insisting he has been unfairly dragged into a corporate liability. "I have been wrongly held accountable for a corporate debt incurred by a company I once directed. This sets a dangerous precedent and jeopardizes my assets," said Muthama in an affidavit filed at the High Court. According to documents presented in court, the initial vehicle sale was agreed at Sh3.5 million, but the debt swelled to Sh7.1 million over the years due to interest and alleged non-payment. Ms Njiru claimed that despite repeated assurances, including a promise made during a chance encounter in February 2023 at a Nairobi restaurant, no payments were made. "He assured me that Sh1 million would be paid by December 2023, but not a cent was sent. It became clear he had no intention of fulfilling his end of the agreement," noted Njiru in her affidavit. Her lawyer, Robinson Kigen, told the court that the MP not only took possession of the vehicle himself but also gave contradictory accounts of its location when queried. "When our client asked about the truck via WhatsApp, Mr Muthama replied it was in Mombasa," he said. The lawyer added that a fraud report was filed at the Industrial Area Police Station in October 2023 under OB No. 52/19/10/2023, and investigations are ongoing. The alleged fraud includes misuse of the vehicle without payment and deceptive conduct during the transaction. The trial magistrate, in her ruling, stated: "Mr Muthama agreed personally, without clarifying he did so solely as a director. Furthermore, no proof of the alleged Sh500,000 deposit was ever furnished." Addressing the argument that Ms Njiru withheld the logbook, the court dismissed it, saying that "possession of the logbook without payment is expected in such transactions to safeguard the seller's interests." Mr Muthama has appealed the ruling, but his bid to suspend the execution of the decree was rejected by High Court Judge Moses Ado, who ruled that the application lacked sufficient grounds. "The court did not explain why I was being pursued personally for a corporate liability. Moreover, the agreement included a repossession clause in case of non-payment," Muthama contended in his appeal. He further argued that the trial court failed to consider that Newday Motors allegedly received an initial payment of Sh500,000, and that he had previously sought to be struck off the suit, an application that was denied due to allegations of fraud raised in Njiru's claim. The application for Muthama's arrest will be heard on May 19, 2025.

Businesswoman seeks arrest of Lamu West MP over Sh7.1 million car debt

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Businesswoman seeks arrest of Lamu West MP over Sh7.1 million car debt

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