Former Wajir Governor Mohamed Mohamud Declared Bankrupt

The former Wajir Governor Mohamed Mohamoud has been declared bankrupt after failing to pay a debt of Sh7.6 million to a construction company. 

Despite a court order issued in January 2020, Mohamoud and his wife, Kheira Maalim, failed to settle the outstanding debt thus obliging the construction company to file a bankruptcy petition against them. The High Court Judge David Majanja recently appointed the official receiver as trustee of the couple’s estate, noting that the amount owed is not disputed and has been outstanding since the court ruling two years ago.

“There is no reason a bankruptcy order should not be made as the decretal sum is not disputed and has been outstanding since 2020 when judgment was entered against the debtor. This is clear evidence of inability to pay debts by the debtors,” Justice Majanja ruled.

The dispute began in 2006 when the couple requested tiles from the company to build a shopping mall in Eastleigh, Nairobi County. However, the company claimed that Mohamoud did not pay the agreed amount. In response, the couple argued that the company provided substandard and brittle tiles that shattered within a week of being laid and that the company shrugged off their complaints and avoided replacing damaged tiles

The ex-governor, his spouse, and their company have been involved in a legal dispute that has resulted in multiple court appearances. The Business Registration Services says bankruptcy rulings protect debtors against harassment by creditors and asset seizures. In May 2021, the ex-governor was ousted from office on accusations of financial misconduct, abuse of authority, and insubordination of the Constitution. Members of the County Assembly accused him of unlawfully delegating power to his spouse and bypassing legal procedures.