Jubilee Party Secretary-General Raphael Tuju’s troubles seem to be far from over after a court on Tuesday compelled a hotel linked to him to pay Ksh1.4 billion he owes East Africa Development Bank EADB.
The directive comes a few days after the bank moved to a London based court to force the restaurant, (Dari restaurant) to honour its loan obligation.
The restaurant which is located in Karen Nairobi is required to clear Sh1.4 billion, which was issued back in 2015 at Sh 951 million and has since accrued principal and loan interest.
In its submission, EADB at the Queen’s Bench Division of the High Court of Justice of England and Wales argued that the amount has been defaulted since 2017 making it escalate to the current debt.
COURT compels hotel linked to Jubilee secretary general Raphael Tuju to pay Sh1.4 billion defaulted loan to EADB. pic.twitter.com/qEiRx5jPsh
— The Star Breaking (@TheStarBreaking) January 7, 2020
The ruling was made despite Dari Restaurant appealing against a decision by the court, which dismissed its opposition to the bank claim, setting the stage for the bank to seek enforcement, including possible auction.
According to the documents presented before the court, Mr Tuju and a firm known as S.A.M Company Ltd signed a deal under which they promised to guarantee the payment obligations on a full indemnity basis on April 10, 2015.
In addition, the documents further showed that $102,916 (Sh10.6 million), which was part of the deal, was cancelled.
The unfolding comes at a time when Tuju is fighting off guns trained at him by Tanga-tanga leaders who have accused him of rocking the party from within.
Addressing public gatherings recently when they toured the Western region, the leaders allied to Deputy President William Ruto called for the resignation or sacking of Tuju over what they described as an anti-Ruto campaign within the ruling party.