The East Africa Development bank intends to file for bankruptcy against Jubilee Party Secretary-General Raphael Tuju for failing to pay a Sh 1.6 billion debt.
In an insolvency notice no. E003 of 2020, Tuju has been given three weeks from 3rd January to pay EADB USD 16,550,608.63 on which interest continue to accrue.
This according to the bank, is the amount due as payment of the principle payable as at 20th December 2019 pursuant to a guarantee and indemnity dated 20th April 2015 under the facility dated 10th April 2015 and for the loans made by the bank to Dari Limited.
“Further, take notice that failure to pay the afore-stated amount shall result in EADB filing for a bankruptcy order against your estate,” reads the insolvency notice.
Tuju is expected to secure or compound for the said sum and and the accruing interest to the satisfaction of EADB, or to the satisfaction of the court , or shall satisfy the court with a counter-claim, set-off or cross-demand against the said bank.
The notice was served upon Tuju, Alma Tuju, Yma Tuju, and Mano Tuju.
On Tuesday 7th, Nairobi Judge Wilfrida Okwany accepted a judgement issued by a UK court against Tuju saying that EADB had satisfied the conditions to be enforced in Kenya.
The loan was allegedly for the construction of Sh 100 million two storey bungalows on a 20 acre piece of land in Karen dubbed Entim Sidai and purchase of a 94 year old bungalow built by Scottish missionary, Dr Albert Patterson which currently operates as a high-end restaurant.
However, the construction of the said houses fell behind schedule and Tuju’s company defaulted on payment.