Woman to repay husband Sh2.6m over failed deal

The Court of Appeal has ordered a woman to repay her husband Sh2,687,797, he lent her as start-up capital for a business venture.

Judges Kathurima M’Inoti, Fred Ochieng and Weldon Korir issued the ruling, directing Beryl Awinja Sakwa to repay her husband, Angaluki Muaka, the millions of shillings he had advanced her to establish and run a joint venture dubbed Colon Cleansing and Beauty Shop.

The court’s ruling stems from a legal dispute over a business venture the couple had started together in 2013.

It all began with a vision. In early 2013, Beryl Sakwa and Angaluki, a married couple, decided to venture into the wellness and beauty industry.

They founded Colon Cleansing and Beauty Shop, a business designed to offer colon cleansing services alongside beauty treatments. The idea seemed promising, combining the growing health and wellness trend with beauty services.

To make the dream a reality, Angaluki, a man with a long-standing passion for wellness and entrepreneurship, decided to support the venture.

He lent Beryl Sh1,977,797 as start-up capital, with the expectation that she would repay the money through monthly installments of Sh300,000, starting in June 2013.

The couple formalized their agreement with a written contract on February 14, 2013, which outlined the specifics of the repayment plan, as well as penalties for late payments.

Despite initial optimism, the business struggled to attract a steady customer base. Costs piled up, and the promised revenue failed to materialize. As months went by without any repayment, tensions began to rise between Beryl and Angaluki. 

Beryl blamed the business’s lack of success on factors beyond her control, including what she viewed as Angaluki’s failure to provide adequate managerial support. 

She argued that since the business was not profitable, she should not be held accountable for repaying the money. On the other hand, Angaluki, who had invested his own savings into the business, grew increasingly frustrated. For him, the collapse of the business was a financial and emotional blow, and he could not understand why Beryl was not honouring their repayment agreement.

He repeatedly sought repayment and even offered her a grace period, but his efforts were in vain.

The couple’s relationship, once founded on love and mutual goals, now turned to one of acrimony.

Angaluki, disheartened by Beryl’s lack of accountability, eventually decided to take legal action. 

In 2015, he filed a lawsuit against Beryl in the High Court, seeking repayment of the Sh1,977,797 he had lent her, along with Sh300,000 monthly installments that were never paid and late fees for the months of June and July 2013. The total amount, including penalties, was calculated to be Sh2,687,797.

Beryl’s defense during the trial was that the loan was not a formal business agreement, but rather a personal gift from her husband to support her personal endeavors. 

She claimed that the repayment should be based on the success of the business, which, according to her, had failed. However, the High Court rejected Beryl’s arguments.

In a ruling issued in February 2019, the court determined that the business agreement was indeed a formal contract and that Beryl was legally obligated to repay the loan.

Unsatisfied with the High Court’s judgment, Beryl contested the decision at the Court of Appeal in 2019. 

Last week, the Court of Appeal delivered its judgment, upholding the High Court’s decision, dismissing Beryl’s claims. The judges ruled that the document they had signed was clearly a business agreement and not a personal arrangement.