Sh6m debt swallows Mamba Village
The High Court has directed a receiver-manager to take over the running of Nairobi’s Mamba Village after it was declared insolvent over a debt of Sh5.9 million.
Justice David Majanja ruled that the restaurant has failed to pay the debt owed to Kagwimi Kang’ethe & Co. Advocates or defend the case, yet it was served with court documents.
The restaurant, which offered a wide range of activities for families ranging from horse to camel riding, paintball, and boat rides, has failed to pay the debt since 2018 according to the law firm.
It says it has made repeated requests to the management for payment or part payment, but it has fallen on deaf ears.
Justice Majanja said the law firm served Mamba Village with the notice in May and the petition was advertised in the newspapers and the Kenya Gazette on November 11 and 12, respectively.
“In the circumstances, I find and hold that the company is unable to pay its debt and as such, insolvent,” justice Majanja ruled. He said the official receiver, appointed by the government, will be the provisional liquidator.
The debt arises from a case filed by the National Bank of Kenya against Mamba Village in 2005. Then, the lender granted a loan to Mamba Village, which was secured by charging a parcel of land on Lang’ata Road registered in the name of Muturi Investments Limited.
The restaurant instructed the law firm to defend it and the firm filed a defence for the court to declare that NBK was not entitled to claim against the principal debtor (Mamba) because of an alleged breach of contract of lending thus the debt. BY DAILY NATION
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