Jubilee Party Secretary General Raphael Tuju has been caught on the hook as a foreign bank wants to seize his assets over 1.5 billion shillings loan.
A High court ruling gave East African Developmental Bank (EADB) the go-ahead to seize Tuju’s assets due to 1.5 billion shillings loan that was given to his Company, Dari limited.
Tuju had made an agreement with the EADB that the case would be heard in a United Kingdom court, but he later decided to appeal to the High Court after the United Kingdom court ruled in favor of the lender.
The Jubilee party SG claimed that the English court was biased and did not give him a fair chance to defend himself against the EADB.
In the agreement, Tuju’s company, Dari Limited was advanced a loan of 900 million shillings to Purchase a property known as Tree Lane in Nairobi back in 2015.EADB then took titles of 27 acres of Tuju’s land as security.
The former Rarieda Member of Parliament said he would have Phase Two project which he would use to get additional funds and pay the loan owed to EADB but the bank did not give him the second loan.
The UK court later learned that there was no Phase Two project in terms of an agreement between Tuju and EADB as the lender remained mum, thus Tuju lost the case.
“I have been referred to the minutes of the board meetings which resolutions were passed approving the loan arrangements. There is no reference in those documents to the alleged representation concerning Phase Two,” ruled the English court.
Tuju’s lawyer argued that the Phase Two Project was crucial in repaying the loan but the bank remained silent thus affecting the deal.
“The proceeds of the sale of the facility, services, and the spa would be a source of revenue to repay the amount borrowed. The respondents did not dispense the funds as had been agreed upon. They only gave money for the first phase,” the lawyer argued.
Tuju’s hopes were further deemed when the High Court judge ruled against him saying that the UK Court had its own order, which is somehow different from that of the Kenyan courts.
According to Justice Wilfrida Okwany, Tuju had been given the opportunity by the UK court but he lost, and going to the high court was like seeking validation of the ruling by the English court.
“The jurisdiction of the court is limited to the enforcement of the foreign judgment. Any further challenge to the finding of the UK court can only be determined by the English court. The order of the UK court cannot be impeached by this court,” Justice Okwany ruled.
Tuju has however been given a chance to appeal the decision made by the High Court.