Tuju Loses Control of Multi-Billion Company

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Jubilee secretary general Raphael Tuju addressing the media on the Wajir West By election on April 10, 2019.

Jubilee Secretary-general Raphael Tuju’s woes are still piling up after the cabinet secretary without portfolio lost control of his company.

A report by The Standard indicated that Dari Limited, a company owned by the CS, was placed under receivership over Ksh1.5 billion debt it owes the East Africa Development Bank (EADB).

In a ruling on Monday, March 2, Justice Grace Nzioka handed the company to receiver managers Thoithi Muniu and George Weru. 

The Judge, however, ordered the two not to sell off any properties owned by the firm in their attempt to recover the loan.

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Jubilee Secretary-general Raphael Tuju addressing the media on the Wajir West By-election on April 10, 2019.

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“The company cannot be effectively run by both the directors and the receivers. Upon appointment, the receivers remain in force. They will not dispose any assets under a debenture,” she ordered.

The default stems from a loan of Ksh900 million that Dari Limited had sought from EADB which later accrued Ksh600 million in interest.

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In their defence, Tuju’s lawyers, Paul Muite, Paul Nyamodi and Bridget Ndong, argued that the company had operated without cash for a while now and that it could not pay its employees since its accounts had been frozen.

“The plaintiff operates a cashless business and has money in the accounts the defendants have frozen.

“The end of the month has come and it will not meet its obligations to suppliers and over 100 employees. The business should not be held at ransom by receivers,” they stated.

The judge, however, explained that the salaries and supplier payment issues would be handled by the new managers of the company.

EADB’s lawyer had disputed the claim stating that the accounts were frozen after the defendants learnt about the case, and not after the court heard the matter.

On February 13, Tuju lost a bid to block the auction of properties that he used to access a multi-million dollar loan for the construction of luxury apartments in Nairobi’s leafy Karen suburb.

READ  Moses Kuria Threatens Revolt Against Tuju

EADB had sought to enforce a ruling by a London court that found the cabinet secretary to have defaulted on the loan, including principal and interest.

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Jubilee Party secretary-general Raphael Tuju addresses journalists in Nairobi on July 2, 2018.

Jubilee Party secretary-general Raphael Tuju addresses journalists in Nairobi on July 2, 2018.

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