Mamba Village Up For Closure

Due to a Ksh5.9 million debt Mamba Village is at risk of being closed down.

Mamba Village Up For Closure

This is after a law firm moved to court seeking to declare the joint insolvent over the debt which it has reportedly refused to pay since 2018.Kagwimi Kang’ethe & Co Advocates said in a petition that the restaurant, located approximately 13 kilometers from the Nairobi CBD, ignored repeated requests to its management for payment or partial settlement.

“More than 21 days have elapsed since the petitioner served a statutory demand on the company for payment of the debt on 4th June 2021 but the company has failed to pay the debt or any part of the debtor comply with the statutory demand,” the firm was quoted by the Nation.If the petition is allowed, the law firm wants an official receiver appointed to liquidate the restaurant. The notice to declare Mamba Village insolvent was also gazetted under the Kenya Gazette.

Through lawyer George Kang’ethe, the firm wants the restaurant closed down over its inability to pay its debts. The debt was from a case it had been faced with that was filed by the National Bank of Kenya in 2005, which had granted a loan to the restaurant, which was secured by charging a parcel of land on Lang’ata Road registered in the name of Muturi Investments Limited.

The eatery had then instructed the firm to defend it against the lender in 2018, and the firm obliged by filing a defense to declare that the bank was not entitled to claim against the restaurant because of an alleged breach of contract.

The law firm then asked to be paid Ksh2.5 million as instruction fees plus other charges following its successful defense, amounting to Ksh7.2 million. The amount was later reviewed downwards by the court.

The restaurant then moved to challenge the fee on grounds that it was too costly, but their case was shot down by the High Court.

The advocate is demanding to be paid Ksh5.9 million plus interest from November 2018 when the case was decided. The insolvency case is set for hearing next week.