The Court of Appeal has suspended bankruptcy proceedings against Cabinet Secretary Raphael Tuju over a Sh1.6 billion debt.
This means the bankruptcy case pending at the High court will not proceed until an appeal filed by Tuju is heard and determined.
Also suspended by Justices Hannah OKwengu, Patrick Kiage and Agnes Murgor are enforcement notices that would have seen the East Africa Development Bank (EADB) seize Tuju's assets for the loan advanced to his company, Dari Limited.
The Judges said the bankruptcy proceedings and the enforcement notices are all anchored on the United Kingdom (UK) decision which arises from a loan facility agreement between Tuju and EADB.
"Therefore, unless an order staying the proceedings is granted, Tuju's appeal will be rendered nugatory," they said.
Tuju and his children have been fighting several suits among them threats by the bank to auction their property and declare bankruptcy for failing to repay the loan.
The cases 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.
In January, Justice Wilfrida Okwany accepted a judgment issued by a UK court against Tuju over the debt.
She said the bank had satisfied the conditions for the judgment to be enforced in Kenya.
Tuju, being dissatisfied with the decision, appealed.
The court after hearing his matter, halted the implementation of the judgement by the United Kingdom court to attach his property.
