A company associated with Opposition leader Raila Odinga faces auction over a Sh7.7 million debt it owes another firm.
This is after a Mombasa court allowed Betric Kenya Ltd to recover the money, plus interest, from Spectre International Ltd for unpaid fuel supplied to it three years ago.
Betric Kenya had delivered 14,500 litres of fuel oil to Kisumu based-Spectre International at a cost of Sh8 million between June 4 and July 18, 2016, but only a small amount has been paid-up.
Betric Kenya's lawyer Wameyo Onyango said that after Spectre International asked to be supplied with the oil, it was expressly agreed that it would pay up within 30 days.
"The total amount payable in respect thereof being Sh8 million, the defendant has made some payments leaving a balance of Sh7.3 million," the company said in court papers.
Betric Kenya's directors argue that in order to finance the transaction, it had borrowed money at an interest of five percent that has been accruing on a monthly basis since 2016.
"The plaintiff avers that it has severally written to the defendant demanding the immediate payment of the outstanding accruements.
"But the defendant, in spite of repeated promises, has failed to pay hence this suit," the company said.
In a verifying affidavit, Betric Kenya director Beatrice Aoko said the company has been unable to repay the loan it took to procure the goods and deliver them to Kisumu due to non-payment by the defendant.
"The plaintiff's claim against the defendant is for Sh7.7 million, being the amount payable on account of the fuel delivered to the defendant and accrued interest now payable by reason of the delay in loan payment, which delay has solely been caused by the defendant," the company said.
The court had on October 4 last year granted Betric Kenya leave to effect service of court summons by means of an advertisement in local dailies for Spectre to enter appearance within 30 days; but Spectre failed to do so.