This archive report was first published on 3 January 2020.
On January 3, 2020, the High Court blocked East African Development Bank (EADB) from selling a Karen property owned by Jubilee Party Secretary-General Raphael Tuju over a Sh1.53 billion debt row.
Justice Grace Nzioka issued the order, directing that no assets belonging to Dari Limited should be disposed of, pending the hearing of the dispute next month.
The dispute revolves around a botched Sh1.53 billion loan deal, which was targeted for the construction of luxury homes in Entim Sidai, a 20-acre forested land.
However, the development of the 12 luxury homes worth Sh1.2 billion has fallen behind schedule, setting the stage for defaults and asset seizures.
Mr. Tuju, through his lawyer Paul Nyamodi, blamed the bank for the delayed construction of the homes after the lender declined to provide additional millions for building the luxury houses in breach of the loan agreement.
Mr. Tuju accused EADB of disbursing Sh932.7 million instead of the agreed Sh943.9 million, adding that the bank had 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 would not be able to service the loan facility,” he added.
