A former friend and business associate of Equity Bank founder Peter Munga has taken him to court for failing to pay him a debt of Ksh150 million.
According to court papers, Joseph Kamau who owns Bethany Vineyards says that Munga bought three million shares from the company worth Ksh150 million, but has since 2011 failed to pay the amount.
Bethany Vineyards had borrowed and failed to pay Ksh40 million from Equity Bank, prompting the transaction. In the deal, Munga was supposed to clear the loan for the company, and pay the remaining amoung to Bethany Vineyards.
At one point, Munga wanted to settle the matter out of court and pay Mr kamau’s company Ksh90 million, which Mr Kamau did not agree to.
When he was unable to secure an out of court settlement, Munga pleaded with the court to have the case thrown out on grounds that Mr Kamau’s affidafit was filed late.
Although the judge agreed that Mr Kamau had taken long to file an affidavit, she said Mr Munga had suffered no prejudice from the delay.
“The affidavit was filed six months later. No explanation was given by the plaintiffs why they delayed in filing the affidavit. Notwithstanding that delay, there is in my view, no prejudice suffered by the 3rd defendant due to that delay,” said Justice Mary Kasango
Mr Munga is said to have cleared the loan only, and failed to remit the remaining amount.