Home GENERAL NEWS EADB says doubtful Raphael Tuju will repay Sh1.5bn loan

EADB says doubtful Raphael Tuju will repay Sh1.5bn loan

by biasharadigest
SAM KIPLAGAT

By SAM KIPLAGAT
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The East African Development Bank (EADB) has moved to the High Court to enforce an order by a UK judge for the lender to recover Sh1.5 billion from Jubilee Party secretary-general Raphael Tuju.

Appearing before Justice Wilfrida Okwany on Monday, the bank, through lawyer Gihu Muigai, said it was apprehensive about failure to recover the money.

Prof Muigai noted they had learned that Mr Tuju and his company, Dari Limited, were in the process of subdividing and constructing houses on two parcels of land, which were used as security to secure the loan.

In an affidavit filed by Mr Ronald Makokha, the regional lender says 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.

“The applicant is therefore apprehensive that the respondent’s actions are intended to frustrate the chances of recovery by the applicant upon the registration and enforcement of the judgement,” Mr Makokha said in an affidavit.

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Prof Muigai told Justice Okwany that Mr Tuju and his company lost the suit in the UK court and that in his view, they have satisfied the requirement for the judgement by High Court Deputy Judge, Mr Daniel Toledano, QC on June 19, 2019.

In the matter, the bank accuses Dari of defaulting in repayment of a loan of $9.3 million (Sh943.9 million) granted to the company in 2015, thereby breaching the obligation under the said agreement.

Court documents show the restaurant entered into an agreement with the bank on April 10, 2015, under which it agreed to give Dari the loan.

The bank says it issued a demand for the immediate repayment of the loan after getting the judgement in UK but that the company has failed to honour it.

Mr Tuju accuses EADB of disbursing Sh932.7 million instead of the agreed Sh943.9 million, and added that the bank reneged on the plan to offer Sh294 million for building the luxury homes for sale.

“EADB is fully aware that in the absence of the development of the housing units for sale as envisaged in the project proposal, Dari will not be able to service the loan facility,” he added.

He also accuses EADB of stopping KCB Group from taking over the loan and derailing equity investments in the deal by Dubai investors.

“The defendant is frustrating the plaintiff’s efforts to secure alternative funding, thereby clogging the plaintiffs right to redeem the facility,” he said.

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