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Tuju Escapes Auction Over Ksh1.6B Debt
Jubilee Secretary-General Raphael Tuju can temporary breath a sign of relief after the Court of Appeal on Friday, November 20 suspended enforcement of auction notices over Ksh1.6 billion debt.
In their ruling, Justices Hannah OKwengu, Peter Kiage and Agnes Murgor issued orders temporary stopping East African Development Bank (EADB) from demanding Ksh1.6 billion debt from him and his family over a botched deal that happened in 2015.
The three justices restrained the EADB from seizing Tuju’s assets for the loan advanced to his company, Dari Limited pending determination of the Jubilee Sec Gen’s appeal.
The court also halted the bankruptcy proceedings filed by the against Tuju and his children.
According to the judges, the bankruptcy proceedings and the auction enforcement notices are all anchored on the United Kingdom (UK) decision which arises from a loan facility agreement between Tuju and EADB.
“Clearly, the issue of recognition and enforcement of the UK judgment is still live in the appeal. The enforcement of the statutory demand notices cannot also be divorced from the UK judgment,” Justices Hannah Okwengu, Patrick Kiage and Agnes Murgor said in their decision.
Tuju and his children have engaged EADB in legal battles after the bank threatened to auction their property and declare them bankrupt for failing to repay the Ksh1.6 billion loan.
Tuju through his company, Dari Ltd, inked a deal with the bank on April 10, 2015, under which EADB gave his company a Ksh943.9 million loan to fund the acquisition of a property in Karen known as Tree Lane and for development and construction of residential units.
His children acted as guarantors in the deal.
