LOAN RECOVERY

Court allows bank to recover Sh1.4bn from hotel linked to Tuju

Tuju, being one of the directors, promised to guarantee payment.

In Summary

• Judge Winfrida Okwany gave the go-ahead to East African development Bank after she recognised a judgment the latter obtained from a UK court.

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

Head of the Jubilee Party secretariat Raphael Tuju during a past press conference at the ruling coalition's headquarters in Pangani, Nairobi
Head of the Jubilee Party secretariat Raphael Tuju during a past press conference at the ruling coalition's headquarters in Pangani, Nairobi
Image: FILE

A bank has been allowed to start the process of recovering some Sh1.4 billion loan default from a restaurant associated with Jubilee secretary general Raphael Tuju.

Judge Winfrida Okwany gave the go-ahead to East African Development Bank after she recognised a judgment the latter obtained from a UK court.

The judge said that the decision from the UK court is enforceable and allowed the bank to go ahead and enforce it.

 
 

This means the bank can go ahead and recover its money.

Tuju, being one of the directors, promised to guarantee payment.

East African Development Bank had asked the High Court on Monday 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.

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) loan which was part of the deal, was cancelled.


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