This archive report was first published on 20 June 2020.
Published on June 20, 2020, a Court of Appeal ruling has halted the implementation of a judgement by a United Kingdom court to attach the property of Jubilee Secretary General Raphael Tuju.
East Africa Development Bank (EADB) had been seeking to attach Tuju's property to recover a Sh1.6 billion loan advanced to his company, Dari Limited, for property development. However, the Court of Appeal judges Martha Koome, Mohamed Warsame, and Jamila Mohamed barred EADB from seizing and disposing of assets that Tuju had offered as security for the loan.
The order will only be enforced if Tuju deposits Sh50 million in a joint account within 30 days. Failure to do so will result in the dismissal of his application.
High Court Judge Wilfrida Okwany had previously given EADB the go-ahead to attach Tuju's property, stating that he had an opportunity to appeal the UK Court of Appeal's decision, which he lost.
According to Justice Okwany, Tuju's prayers were akin to asking the Kenyan Court to sit on appeal of the UK Court. She observed that her role after the judgement was ceremonial, to simply validate its enforcement in the country.
Earlier, Tuju and EADB had agreed to have the former Rarieda MP open two accounts, an escrow account and a debt service account with BOA to secure the loan for purchasing a property in Nairobi known as Tree Lane, and developing residential houses for sale.
East Africa Development Bank accuses Bank of Africa of breaching an agreement requiring it to notify the regional bank whenever withdrawals or transfers of money from the escrow account opened in its favour back in 2015 were made.
“BOA breached obligations under the escrow account agreement because it permitted such withdrawals or transfers without prior consent from EADB,” a letter written by EADB's head of business in Kenya Loise Muigai to BOA reads in part.
