Central Organisation of Trade Unions secretary-general Francis Atwoli is embroiled in a legal tussle with politician Cyrus Jirongo over a Sh110 million debt.
Mr Atwoli claims in court papers that, by an agreement made last August 10, he advanced Sh100 million to the Nyayo-era influential politician, payable in 50 days, with an interest of Sh10 million.
The former Lugari MP allegedly made an undertaking on October 10 admitting his indebtness to Mr Atwoli and undertook to repay him by that October 21.
“Despite demand made, Mr Jirongo has totally refused, failed and ignored to effect payment as per the terms of the agreement,” said Mr Atwoli.
The renowned trade unionist is seeking damages from Mr Jirongo for breach of contract and interest on the Sh110 million at 25 per cent, with effect from August 10, 2016, when the agreement was allegedly made, to date of payment in full. He also wants to be paid the costs of the suit.
In the agreement filed in court by Mr Atwoli, Mr Jirongo had said that he acknowledged receipt of $1 million from Mr Atwoli “as a friendly loan payable back to him within the next 50 days from proceeds of damages payable to my company Kuza Farm Ltd by Nairobi City County”.
The county was supposed to pay Mr Jirongo’s firm following a consent order recorded before the Environment and Land Court on July 6, 2016 arising from a case filed in 2014.
Mr Jirongo acknowledged receipt of the funds on the security of his consent judgment, and the undertaking made by Nairobi City County lawyers to Mr Atwoli’s advocates, to repay the amount with a top-up of $100,000, totalling $1.1 million (Sh110 million) within the agreed period.
In default of a refund or repayment, Mr Atwoli was at liberty to attach Mr Jirongo’s judgment, or enforce repayment against him personally, or any property belonging to him to recover the full sum due with interest at 25 per cent per year as well as costs.
Kuza Farm was to be paid Sh250 million as compensation for a 1.012 hectare plot in Nairobi by Nairobi City County, the Board of Directors AEF Reuben Primary School, the National Land Commission and the Attorney-General.