AfricaPress-Kenya: Jubilee Secretary-General Raphael Tuju has managed to temporarily stop a regional bank from demanding Sh1.6 billion from him and his family over a botched deal that happened five years ago.
This is after the Court of Appeal on Friday issued orders halting bankruptcy proceedings filed by the East African Development Bank (EADB) against Mr Tuju and his children, pending determination of his appeal.
Mr Tuju argued that the lender had filed separate cases with the ultimate end of recovering money allegedly advanced to his company, Dari Ltd.
He added that EADB has issued a 45-days notice under section 96 of the Land Act, of its intention to sell property charged to it as security for the money advanced to Dari Ltd. He said the court should not to allow the lender to pursue the same right by separate causes of action.
“Clearly, the issue of recognition and enforcement of the UK judgment is still live in the appeal. The enforcement of the statutory demand notices cannot also be divorced from the UK judgment,” Justices Hannah Okwengu, Patrick Kiage and Agnes Murgor said in their decision yesterday.
The dispute stems from a loan agreement. His company, Dari Ltd, inked a deal with the bank on April 10, 2015, under which EADB agreed to give the firm a $9.3 million (Sh943.9 million) loan.
Part of the deal was to fund the acquisition of a property in Karen known as Tree Lane and for development and construction of residential units.