This archive report was first published on 6 January 2020.
January 6, 2020, marked a significant development in the East African Development Bank's (EADB) efforts to recover Sh1.5 billion from Jubilee Party secretary-general Raphael Tuju.
The bank, through its lawyer Prof Githu Muigai, appeared before Justice Wilfrida Okwany at the High Court, seeking to enforce a UK judgement issued on June 19, 2019, by deputy judge Daniel Toledano, QC.
According to court documents, EADB had granted Dari Ltd, a company owned by Mr Tuju, a loan of $9.3 million (approximately Sh943.9 million) in 2015. However, the company defaulted on the repayment, breaching the agreement.
Prof Muigai told the court that the bank had issued a demand for immediate repayment, but Mr Tuju and his company had failed to honour the same.
Mr Tuju, however, accused EADB of disbursing Sh932.7 million instead of the agreed Sh943.9 million and of reneging on the plan to offer Sh294 million for building luxury homes for sale.
He also accused the bank of stopping KCB Group from taking over the loan and derailing equity investments in the deal by Dubai investors.
