Court suspends Tuju’s bankruptcy proceedings over Sh1.6B debt

Jubilee Party Secretary General Raphael Tuju PHOTO/COURTESY


The Court of Appeal on Friday, November 20 suspended bankruptcy proceedings against Jubilee Party Secretary General Raphael Tuju over Sh1.6 billion debt.

Justices Hannah Okwengu, Patrick Kiage and Agnes Murgor temporarily halted the proceedings until such a time when an appeal filed by Tuju has been heard and determined.

The justices also suspended notices that gave a greenlight to the East Africa Development Bank (EADB) to seize Tuju’s assets for a loan advanced to his company, Dari Limited.

“Therefore, unless an order staying the proceedings is granted, Tuju’s appeal will be rendered nugatory,” said the justices.

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The former Rairieda MP is said to have taken a loan of Sh943.9 million from the regional bank, with his children (Yma, Mano and Alma) acting as guarantors, a loan which he defaulted. The loan now stands at Sh1.6 billion.

The Cabinet Secretary without portfolio intended to use the money to construct a Sh100 million two-storey, flat-roofed bungalows sitting on a 20-acre recreational resort dubbed Entim Sidai and purchase of a 94-year-old bungalow built by Scottish missionary Dr. Albert Patterson, which now operates as a high end restaurant.

The development of the luxury homes fell behind schedule setting in for defaults.

Tuju then accused EADB of delaying the construction of the homes. He says that EADB disbursed only Sh932.7 million instead of the full 943.9 million.

When a United Kingdom court heard the dispute, it ruled in favour of EADB, a ruling that was adopted by High Court judge Wilfrida Okwany. That was when Tuju moved to the Court of Appeal.