A Mombasa Court on Thursday allowed a company associated with Opposition leader Raila Odinga to be auctioned over debt.
Spectre International Limited has been ordered to pay more than Sh7.7 million to a Mombasa Company, Betric Kenya Limited.
The Raila-owned company had failed to pay Betric Kenya for fuel supplied to it three years ago.
According to Betric Kenya, the court heard that between June 4 and July 18, 2016, they delivered 14,500 litres of fuel oil to the Kisumu based-Spectre International at a cost of Sh8 million.
The company however failed to clear the debt within 30 days of delivery as agreed but paid a small amount leaving a balance of Sh7.3 million.
Betric Kenya thorough lawyer Wameyo Onyango said the company’s directors had to borrow money from a financial institute to procure the goods and deliver to Spectre.
Betric Kenya Director Beatrice Aoko said the company was struggling to pay the loan that has an interest of five per cent and has been accruing on a monthly basis since 2016.
“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 as quoted by Nation.
Mombasa Magistrate Francis Kyambia in his ruling ordered Spectre to pay the debt or have their assets auctioned.