Businessman sentenced to six months in jail for failing to pay motor company

A businessman has been sentenced to six months in jail for failing to pay a motor company Ksh.11.9 million.

The court issued the judgement following Johnson Kigundu failure to pay A-Plus motors Limited as he was ordered earlier. 

Allegedly, Kigundu defrauded A-Plus motors limited manager James Muturi of Ksh.5.3 million in a land deal in which the land was to be sold 

at Ksh.34 million.

Court documents indicate that the businessman 

received Ksh.5.3 million shillings as deposit but 

he had not paid the stamp duty for the transfer according to the findings by Spire Bank, the financier who investigated the matter. 

Reportedly, Kigundu offered to return the money but did not. 

Consequently, the court directed that he should pay Ksh.5.3 million plus interest from the date of payment to the date of full reimbursement.

The court also ordered Kigundu to pay Ksh.3.4 million as the 10 per cent damages payable for breach of contract, legal fees of Ksh.620,600 and valuation fees of Ksh.80,000.