LOAN DEBT

Bank seeks to recover Sh1.4 billion from Tuju restaurant

Jubilee secretary general, a director, had guaranteed to ensure loan repayment

In Summary
  • EADB wants to be allowed to enforce UK judgment and recover outstanding money
  • It accuses Dari restaurant of breach of contract
Milimani law courts
CIVIL CASE: Milimani law courts
Image: FILE

A restaurant associated with Jubilee secretary general Raphael Tuju risks being compelled to pay Sh1.4 billion arising out of loan should a court agree to enforce a UK judgment against it.

And should the Kenyan court decline enforcement, Dari restaurant in Karen gets a chance to fight the decision.

East African Development Bank, which is demanding the money, on Monday asked the High Court to accept a June 19, 2019 decision by Daniel Toledano, a judge in England and Wales.

 

The bank through its lawyer Githu Muigai said judgments from a UK court are among those enforceable in Kenya and vice versa.

He informed judge Winfrida Okwany  that Dari restaurant unsuccessfully appealed against the decision of the UK court and therefore his client should be allowed to enforce the judgment.

The bank initially filed the case before a London court seeking to compel Dari to offset the $13.6 million (Sh 1.4 billion) loan, which includes the principal and interest.

According to court documents, Dari entered into an agreement with the bank on April 10, 2015 under which it agreed to give Dari a $9.3 million (Sh 962 million) loan. However a $102,916 (Sh 10.6 million), further loan which was part of the deal, was cancelled.

Tuju being one of the directors promised to guarantee payment.

It is alleged that the restaurant agreed to repay the loan in 20 consecutive installments but two years after it was due it has not yet paid, forcing the bank to file a case.

 

Judge Okwany on Monday indicated that she will give her ruling on the matter today at 11am.

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