This archive report was first published on 17 July 2020.
Kenyan businessman Raphael Tuju, the Secretary General of Jubilee Party, has been embroiled in a long-standing dispute with a regional bank over a loan of $9.3 million (Sh943.9 million) borrowed by his company, Dari Ltd, in 2015.
As part of the loan agreement, the bank agreed to fund the acquisition of a property in Karen known as Tree Lane and for development and construction of residential units.
However, the bank and Dari Ltd later fell out, with the company defaulting on the loan. The bank was forced to recall the loan, and the dispute was heard by a UK court, which ruled in favour of the bank.
On July 8, 2020, Justice Mary Kasango declined to stop insolvency proceedings pending before the High Court and another case challenging the appointment of receiver managers, saying there was nothing to show that the money had been deposited as directed.
But Mr Tuju, through his lawyers, Senior Counsel Paul Muite and Paul Nyamodi, insists that Dari and the guarantors (Mr Tuju and his children) obtained orders stopping all the cases arising from the judgement granted by a UK court last year.
Mr Muite argued that the receivership was based on the loan agreement, which is the subject of appeal, and that it was on that basis the appellate court stopped the cases. He also claimed that East African Development Bank had persistently frustrated Dari's effort to repay the loan.
As a condition for stopping the auction of his property, Mr Tuju has deposited Sh50 million in court, which he claims has been deposited in a joint-interest earning account.
"We write to confirm that this condition has been complied with. Our clients have deposited Kshs.50,000,000 in an interest earning account at NCBA Bank Kenya," the letter stated.
