Moi’s son asks court to declare him bankrupt

Bankruptcy is the legal status of an insolvent person or organisation that cannot repay the debts they owe creditors.

In most cases, bankruptcy is imposed by a court order, often initiated by the creditor. One can also petition the court to be declared bankrupt.

On Thursday, the court granted Mr Moi’s plea and issued orders against the sale of his assets. Mr Justice Joseph Mutava also directed that an official receiver be appointed to manage Mr Moi’s estate.

Mr Justice Mutava said he was satisfied with the petition lodged on Mr Moi’s behalf by the State Law Office and directed that a receiving order be issued against his property.

Jared Sala, a litigation counsel in the Attorney General Chambers, told the court that Mr Moi had filed the bankruptcy petition and a statement of his affairs.

“I am satisfied that Philip has completed and submitted to the official receiver (Government) the prescribed statement of affairs. And having paid the mandatory Sh20,000 deposit towards the official receiver’s expenses, I direct that a receiving order be issued against his property,” ruled Mr Justice Mutava.

Top in Mr Moi’s list of debts is the Sh7.5 million that the court ordered him to pay his wife, a Sh5 million debt he owes businessman A.B. Patel and outstanding legal fees amounting to Sh800,000.

Asked why Mr Moi was unable to pay his debt, Mr Sala replied that the applicant had no properties of his own and that the house he occupies in Nairobi’s Muthaiga North belongs to his extended family.

Mr Moi had earlier told the court that he has tried his hand in farming “but things never worked out.”

Upon receipt of the court orders, the official receiver is expected to conduct an independent investigation on the state of Mr Moi’s financial affairs and recommend to court whether he should be declared bankrupt.

In the event that he owns properties, they will be sold to pay the accumulated debts. Mr Moi has been embroiled in a court battle with Ms Pluda who moved to court seeking payment for her maintenance.

She wants the court to order him to pay her Sh7.5 million for upkeep.

On February 16, Mr Justice GBM Kariuki committed Mr Moi to jail unless he pays Ms Pluda for maintenance.

He also ordered that Mr Moi be arrested and taken to Nairobi’s Industrial Prison for one month for failure to comply with court orders.

Last October, the court ordered Mr Moi to pay Ms Pluda Sh250,000 a month for her upkeep and the maintenance of their two children.

Earlier, he had been ordered to pay her Sh60,000 a month, but that was increased to Sh250,000 a month or Sh150,000 per month if the children were in boarding school.

Mr Moi pleaded with the court to suspend the order pending his intended appeal which Mr Justice Kariuki declined and ordered his immediate arrest and detention.

The warrant of arrest was lifted on March 29 by Mr Justice Nicholas Ombija. Mr Moi appeared in court for the first time on April 19 and told constitutional judge Isaac Lenaola that he was unable to pay Sh2 million. He however, accepted to pay Ms Pluda Sh500,000.

“Just because I am the son of former President Moi does not mean I have money,” he told Mr Justice Lenaola adding that he found it difficult to pay maintenance and child support “as Pluda simply walked out of the marital home.”

Mr Moi has lodged a counter-application seeking constitutional interpretation on whether only husbands are supposed to pay maintenance and child support in case a marriage is irretrievably broken.

He claims the warrant of arrest was a violation of his rights “since nobody should be committed to civil jail for inability to pay debt”.

On June 14, the court will rule on whether or not to set aside orders committing him to civil jail.

Lawyers of both parties wound up their submissions last week. Alloys Kwengu is acting for Philip while Judy Thongori is representing Pluda.