Jubilee Party Secretary-General Raphael Tuju has deposited KSh 50 million to save his multi-million Karen property from being actioned by East African Development Bank.
Tuju was caught up in a push and pull with the bank after failing to comply with terms and conditions agreed upon when he received a KSh 943 million from the bank.
The lender prosecuted the dispute in a London court and got orders to seize the property after Tuju and his company, Dari Limited, were found to have defaulted loan repayment which has totalled to KSh 1. 5 billion.
The bank appointed, George Weru and Muniu Thoithi, as receiver managers for Tuju’s property under.
The two were tasked to prepare for the sale of the politician’s assets to recover the KSh 1.53 billion debt.
However, Tuju challenged the ruling through a Kenyan court and secured orders barring the lender and receiver managers from repossessing the property.
This was granted on condition that he remits KSh 50 million within seven days from the date the orders were issued, failure to which the lender would be granted green light to repossess the assets.
The seven-day order was issued last week and was due to expire on Friday, July 17, thus prompting Tuju to comply to save his establishments.
“We write to confirm that this condition has been complied with. Our clients have deposited KSh 50,000,000 in an interest-earning account at NCBA Bank Kenya,” read a letter sent to Registrar of the Court of Appeal by Tuju’s lawyer, Paul Muite.
Tuju accused the bank of reneging on part of its financial pledge, and frustrating his efforts to utilise the loans as intended, the bank remained adamant that their client blatantly flouted and disregarded all the terms of agreement.
“In complete disregard of the deliberate efforts by the plaintiffs (the Tujus) to return the project on profitable trading, the defendant (EADB) has proceeded to appoint receiver managers over all the assets of the plaintiff to engage in the sale and realization of the plaintiff assets and properties as its primary option,” Tuju said.
The Kenyan politician accused EADB of disbursing KSh 932.7million instead of the agreed K Sh 943.9 million.
Further, Tuju claimed the lender reneged on the plan to offer KSh 294 for building luxury homes in Karen for sale.
He argued the decision by the bank to withhold the funds it had promised resulted in financial constraints which harboured investment progress, thus causing a stalemate.
“Having failed to disburse the balance of KSh 10.4 million and further KSh 294 million, the first defendant inevitably experienced cash flow challenges,” said Mr Tuju.
“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,” argued Tuju.
The loan agreement between Tuju’s company and EADB was struck on April 10, 2015, under which the lender agreed to give Dari a KSh 943.9 million for property investment.
Part of the deal was to fund the acquisition of a 94-year-old multi-million bungalow sitting on a 20-acre piece of land in Karen, and for development and construction of residential units.
Tuju is, however, accused of failing to service the loan since 2017 when it was due.