Tuju Deposits Sh50 Million in Court to Save His Karen Property from Auction over Sh1.6 Billion Debt

Jubilee secretary-general Raphael Tuju has deposited Sh50 million in court to prevent East African Development Bank (EADB) from auctioning his property in Karen, Nairobi.

The bank is seeking to recover a debt of Sh1.6 billion which accumulated from Sh943 million Tuju, through his company Dari Ltd, borrowed in April 2015.

Last month, the Court of Appeal ordered Tuju to deposit the amount within 30 days, failure to which the bank would auction his Karen property. EADB appointed George Weru and Muniu Thoithi as receiver managers to oversee the sale of Tuju’s property.

Tuju’s lawyer in a letter to the Registrar of the Appeals Court said he has complied with the order requiring him to make a deposit of Sh50 million.

“Our clients have deposited KSh50,000,000 in an interest earning account at NCBA Bank Kenya,” the letter stated.

The loan was meant to fund the construction of Sh100 million cottages on 20-acre Entim Sidai land and the purchase of a 94-year-old bungalow that now operates as a high-end restaurant. However, the construction of the houses fell behind schedule forcing EADB to seek recovery of Tuju’s assets. 

The dispute was heard by a UK court, which ruled in favor of EADB but Tuju moved the Kenyan high court, accusing the lender of failing to honor part of its financial pledge and frustrating his efforts to utilize the loans.

Earlier this year, High Court Justice Wilfrida Okwany dismissed an application by Tuju and Dari Limited to quash a judgment obtained by EADB before a UK court. 

Justice Okwany said she was satisfied by the decision made by the UK court and that the Kenyan High Court cannot set aside the judgment.

The ruling paved the way for EADB to auction Tuju’s property but the plaintiff appealed against the judgement at the Appellate Court, which suspended the auction pending the hearing and determination of the appeal.