- The East African Development Bank (EADB) says Tuju has declined to settle the amount due to them together with interests.
- However, Tuju has asked the court to dismiss the application saying "it is misconceived, not aligned with our constitutional policy, and principles of fair administration"
Image: FILE
A regional lender has asked the High Court to allow them to take over rent proceeds from Tamarind Management Limited which runs a property in Karen associated with former MP Raphael Tuju in a bid to recover a defaulted loan of Sh2 billion.
In its application before the Milimani Commercial Court, the East African Development Bank (EADB) says Tuju has declined to settle the amount due to them together with interests which currently stands at Sh4.5 billion.
However, Tuju has asked the court to dismiss the application saying "it is misconceived, not aligned with our constitutional policy, and principles of fair administration"
The bank says they are aware that Tuju has an active tenancy agreement with Tamarind over the property in Karen in which Dari Limited and Tuju receive rental income.
"The rental income paid by Tamarind to Dari and Tuju ought to be applied towards the settlement of the decretal sum, and interest all awarded in the English High Court judgement,"
The bank initially filed the case before a London court seeking to compel Dari Ltd to offset a Sh1.5 billion loan.
The loan was meant for the construction of flat roofer bungalow which currently operates as a high end restaurant. The court subsequently allowed the regional bank to recover the money from Tuju.
The bank in its fresh application says they are apprehensive that unless the orders they are seeking are granted, Tuju will withdraw or otherwise redirect received funds from Tamarind as rental income for the said property.
"These monies may be used to satisfy the decretal sum and accrued interests all awarded by the English court," reads their documents in part.
They argue that unless the court acts with speed, the same will prevent them from recovering the outstanding monies due to it.
"We will continue to be denied an opportunity to enjoy the fruits of the English high court judgement which has been recognised and enforced by the Kenyan court," says the Bank.
The application is set to be mentioned tomorrow (Wednesday) before Justice Alfred Mabeya for directions.