Former presidential contender Cyrus Jirongo has been declared bankrupt by the court after it found that he his unable to pay debts amounting to Sh 700million.

Justice Olga Sewe of the commercial division, said that it had been demonstrated that Jirongo's was unable to pay debts owed to Businessman Sammy Kogo which ran into millions of shillings.

The judge ordered an official receiver be appointed as trustee for Jirongo's estate.

Businessman Sammy Kogo through his eight companies petitioned the court seeking bankruptcy orders to be issued against Jirongo, the order was granted on 29 September 2017.

Jirongo had secured bank loan from National Bank of Kenya using properties belonging Kogo, but he failed to repay loan. According to court papers Jirongo was to make payments within 180 days from 12 September 2013.

The bank moved in and sold the properties held as security in 2009.

Jirongo entered into an agreement to pay Sh 700million being value of the properties, that was sold by the bank through a public auction.

He failed to honor the agreement within the stipulated period, causing the appropriator of the suit properties to institute court proceedings against him.

The suit properties were held in the names of Masole, Bain enterprises, Gileta, Koit developers, Saman developers, Kenete enterprises and Linsala enterprise limited.

During the hearing of the suit, Jirongo failed to enter an appearance or file a statement of defense and judgement was entered in favor of Mr Kogo.

The former Lugari Mp is also facing another suit after the Central Organisation of Trade Unions Secretary-General Francis Atwoli sued him over alleged non-payment of a Sh110 million debt.

Jirongo had in October last year made an undertaking that he would pay the money that Atwoli had advanced to him.

Atwoli claims that Jirongo has failed to pay him and now wants the court to compel the former MP to pay up.

The Star/ Zipporah Weru