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Originally published by Kenyans
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January 28, 2026
1w ago

Directors of Failed Startup Ordered to Refund Investor Ksh23 Million

Directors of Failed Startup Ordered to Refund Investor Ksh23 Million

This was after investors invested a large sum of funds to support the establishment and operations of the business, only to discover that the venture was not being managed as initially presented..

✨ Key Highlights

The High Court in Nairobi has ordered the directors of a failed startup to repay Ksh 23.8 million to investors after finding that funds intended for business operations were mismanaged and the venture was not run as promised.

  • The investors had advanced a total of Ksh 24.7 million for the startup's establishment and operations.
  • Evidence showed directors received funds in their personal capacity, and an audit revealed misapplication of funds.
  • The High Court ruled that directors must jointly and severally repay Ksh 15 million, with an additional Ksh 8,848,391 payable by one director who admitted partial responsibility.
  • One director committed to paying half the sum, citing that the plaintiffs are his elderly parents who lost their retirement funds.

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