Tour firm risks losing assets in debt dispute

Five directors of a tour and travel firm have been summoned to appear back in court on May 30 over a debt of Sh14 million.

Deputy High Court Registrar Kennedy Kandet issued the order on Thursday following an application by International Air Transport Association (IATA) and Mercantile Life and General Assurance.

Mercantile and IATA moved to court wanting Pinnacle Tours and Travels Limited and its former managing director, Susan Wamae, to pay Sh13 million and $17,373 accrued from the sale of air tickets.

Also summoned alongside Ms Wamae, are other Pinnacle directors Mr Charles Onyancha, Mr Edward Anthony Njoroge, Mr Zephania Mbugua and Ms Peggy Wangari Kinna.

They will be required to declare the assets and means of Pinnacle and prove to the court their ability to pay the debts, failure to which the company’s tangible assets will be sold to recover the debt.

Four years ago, Justice Azangalala ordered Pinnacle to pay Mercantile and IATA the monies it had collected from the sale of air tickets as IATA’s travel agent in Kenya between 2003 and 2006 following the breach of a September 1995 contract.

Assistant general manager of Mercantile Assurance Mr Shem Nyamai said efforts to attach the assets of the tour and travel firm bore no fruits since tangible assets could not be traced.