This archive report was first published on 4 January 2020.
January 4, 2020, marked a significant day in the Sh1.5 billion loan dispute between Dari Limited, a company owned by Jubilee Party Secretary General Raphael Tuju, and the East Africa Development Bank (EADB).
Justice Grace Nzioka ordered Dari Limited not to dispose of any assets related to the loan dispute until the case is settled. This decision was made after EADB lawyer Peter Gachuhi urged the court to order Tuju to deposit a guarantee in court, repay the loan, or deposit money in a lawyer's joint account.
According to court documents, Dari allegedly borrowed Sh900 million from EADB in 2015 to purchase a property in Nairobi known as Tree Lane. Tuju agreed to provide security using titles of his expansive parcels of land in Karen.
However, EADB argued that Dari defaulted on its obligation, and it demanded payment from the firm and its guarantors. The court heard that nothing was paid despite the demand.
Tuju's lawyer, Paul Nyamodi, argued that EADB's conduct precluded them from appointing receivers. He claimed that EADB provided finances for buying the land but did not subsequently provide finances for development.
Justice Nzioka ruled that any decision to be taken by the company must be in consultation with the receivers and that no disposal of assets which are subject of the debenture is allowed.
