SH1.5BN DEFAULTED LOAN

Tuju, children risk civil jail for defying court

They failed to allow receiver managers to access their Karen property as ordered.

In Summary
  • Tuju and his children are fighting several suits pending in court for failure to repay an EADB loan.
  • The loan was meant for the construction of 12 two-storey bungalows, each worth Sh100 million.
CS without portfolio Raphael Tuju
CIVIL JAIL: CS without portfolio Raphael Tuju
Image: FILE

Cabinet Secretary Raphael Tuju and his three children have been ordered to appear in court on September 21 to show cause why they should not be punished for disobeying a court order.

The court had in March ordered the director of Dari Limited to allow the managers appointed by the East Africa Development Bank – Muniu Thoithi and George Weru - access to the Karen property over a Sh1.5 billion defaulted loan. 

Tuju was also required to provide the receivers with Dari’s statement of affairs, financial returns and company records, cash book as from December 23, 2019 to date, the management accounts, the debtors and creditors listing and the company's staff payroll for the last three months.

 
 

But the orders have never been complied with. Tuju and his children, Yma, Mano and Almo risk being committed to civil jail for six months for failing to grant access to the receiver managers.

 

Judge Mary Kasango further granted the receivers permission to resume their duties in Dari’s premises following earlier orders.

Tuju and his children are fighting several suits pending in court, among them threats by the bank to auction their property and declare bankruptcy, for failing to repay the money.

The suits arise out of a Sh1.5 billion loan which Tuju defaulted. It was granted to him by the East Africa Development Bank. His children acted as guarantors for the  loan.

The loan was meant for the construction of 12 two-storey bungalows, each worth Sh100 million. The estate was to sit on a 20-acre forested land named Entim Sidai.

Part of the loan was meant for the purchase of a 94-year-old bungalow built by a Scottish missionary, Dr Albert Patterson, which currently operates as a high-end restaurant.

During the last hearing, lawyer Fred Ojiambo for the bank told the court that the debt continued to increase and it may reach a point where even the securities listed may not be enough to offset it. 

 
 

“Which is why we want the court to urgently grant receivers entry to the property to determine their position,” he said. 

Edited by Henry Makori