Court confirms UK ruling on Raphael Tuju Sh1.5bn pay up order


Court confirms UK ruling on Raphael Tuju Sh1.5bn pay up order

Raphael Tuju
Jubilee Party Secretary-General and Cabinet Secretary Raphael Tuju. He is fighting auctioneers over Sh1.5 billion debt row with East African Development Bank. FILE PHOTO | NMG 

The High Court has confirmed a judgement issued by a UK court that allows East African Development Bank (EADB) to recover Sh1.5 billion from Jubilee Party Secretary- General Raphael Tuju.

In the ruling, Justice Wilfrida Okwany said the lender had satisfied the conditions for the judgement to be enforced in Kenya.

EADB, the judge said, had proved that it obtained the summary judgement against Mr Tuju’s company Dari Ltd in April 2018 and that an appeal filed by the firm had been subsequently dismissed.

On Monday, the lender, through lawyer Prof Githu Muigai, had told the court that it was apprehensive of failing to recover the money, especially after learning that Mr Tuju and his company Dari Ltd were in the process of subdividing and constructing houses on two parcels of land, which was used as security to secure the loan.

In an affidavit filed by Mr Ronald Makokha, the regional lender said Mr Tuju could be developing the 20-acre parcel in Karen with a view to dispossessing the property, yet the titles have been charged to the lender.


In the matter, the bank accused Dari of defaulting on repayment of a loan of $9.3 million granted to the company in 2015.

Court documents showed that the firm had entered into an agreement with the bank on April 10, 2015, under which it agreed to give Dari a $9.3 million (Sh943.9million) loan.

The bank said it issued a demand for the immediate repayment of the loan, after getting the judgment in UK but the company had failed to honour the same.

In another case over the debt dispute, Justice Grace Nzioka on Friday blocked the regional lender from selling the Karen property after it appointed receiver managers to prepare for the sale of its assets to recover what it is owed.

The judge also directed that no assets belonging to Dari Limited, should be disposed of, pending the hearing of the dispute next month.

She added that no decision should be taken on the multibillion-shilling property that could derail the outcome of the suit.

EADB was enforcing the judgement by the London court that ruled that the Kenyan politician had defaulted on the multimillion-dollar loan, which includes the principal and interest. However, EADB had not brought the ruling before a Kenyan court to confirm it before enforcement.

Credit: Source link