Mombasa Finance CEC arrested for failing to pay Ksh.67M debt

Mombasa County Finance CEC and Chief Officer Evans Oanda is currently being remanded at Industrial Area prison in Nairobi after being arrested for contempt of court.

The arrest warrant, issued by High Court Justice J. Ngaah on May 31, 2024, was requested by Murage Juma and Company Advocates on behalf of the Associated Automobile Distributors Limited.

“You are hereby directed to arrest the said Chief Officer Finance, Mombasa County Government and bring before this court to show cause why they should not be committed to jail for six months or for such other period that the court may prescribe, not exceeding six months,” said Ngaah in his May ruling.

“You are further ordered to return the warrant with an endorsement certifying the date and manner in which it has been executed or reasons as to why it has not been executed.”

Oanda is expected to be arraigned on Friday, August 23, as per a warrant of commitment to remand confirming his detention.

“This is to authorise and command you receive the accused into your custody and to produce the said accused in court at 9:00 am, or soon thereafter on August 23, 2024,” the document signed on August 22 reads.

Oanda was arrested for failing to remit a debt owed by the county government to Associated Automobile totalling Ksh.17,751,529.10, plus interest, in monthly instalments of Ksh.1 million - as ordered by the High Court on April 4, 2008.

As of January 31, 2024, the amount, including accrued interest, had risen to Ksh.67,557,859.92.

Benjul Gudka, a director of Associated Automobile, initially filed an application on July 21, 2000 seeking Ksh.13,541,815 from the Mombasa County government, then known as the municipal council of Mombasa.

An initial consent judgment was entered on March 10, 2004, for the said amount plus costs and interest, with the defendant agreeing to pay in monthly the sum in instalments of Ksh.500,000 starting April 11, 2004.

“On 22 September 2006, an order of Mandamus was issued against the Town Clerk of the predecessor of the Respondent to pay the Applicant Kshs.14, 369, 625.25 together with further accrued interest at court rates (12% per annum) from 1 August 2004 until payment in full,” reads court documents.

“On or about 21 March 2010 a warrant of arrest was issued against the Town Clerk, Municipal Council of Mombasa to be arrested and committed in civil jail for failing to pay instalments in the sum of Kshs.1, 000, 000/= per month as ordered on 4 April 2008.”