This archive report was first published on 9 July 2020.
On July 9, 2020, the High Court dealt a blow to Jubilee Secretary-General Raphael Tuju, rejecting his bid to stop bankruptcy proceedings against him over a debt of Sh1.6 billion to the East African Development Bank (EADB).
Mr. Tuju had argued that the Court of Appeal had stopped all cases related to the amount owed to EADB, including the suit by the bank to have him declared bankrupt.
However, Justice Mary Kasango ruled that the Court of Appeal only suspended an order requiring Mr. Tuju to pay Sh1.6 billion, on condition that he deposits Sh50 million in an interest-earning account within 30 days.
The judge noted that it was not clear whether Mr. Tuju deposited the amount, paving the way for the bankruptcy proceedings to continue.
The case dates back to January when Mr. Tuju and his children were given 21 days to pay Sh1.618 billion ($16,550,608) with interest, failure to which the bank threatened to file bankruptcy suit against them.
The loans were meant for the construction of luxury homes and the purchase of a 94-year-old bungalow, but the development fell behind schedule, leading to defaults and asset seizures.
