Tuju’s Bankruptcy Proceedings Suspended

Jubilee secretary general Raphael Tuju addressing the media on the Wajir West By election on April 10, 2019.
  • Jubilee Party Secretary General Raphael Tuju has been offered a reprieve by the Court of Appeal which suspended bankruptcy proceedings against him due to a Ksh1.5 billion dispute. 

    The bench consisting of Justices Hannah OKwengu, Peter Kiage and Agnes Murgor, also suspended enforcement notices which allowed Tuju’s creditor, the East African Development Bank (EADB), to seize his assets for the loan advanced to his company, Dari Limited and guaranteed by his children. 

    The bench ruled that the orders were based on a UK court’s decisions which Tuju had appealed. 

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

    The CS without portfolio had hired lawyers Paul Muite and Paul Nyamodi in his fight to have High Court Judge Mary Kasango removed from office over what he termed as ‘outright bias’ by allowing the bank to auction him without considering his appeal. 

    “The explanation given to my advocates on record is strange, to say the least. It was reported that the Judiciary e-filing system did not pick up the urgent application because it was bundled together with other documents, hence the same was not detected as an urgent matter. 

    “Kasango’s failure to handle the urgent application has occasioned us grave injustice. No reason or justification can satisfactorily explain why this application was not heard with the urgency it deserved. The reasons advanced by the judge are unacceptable, †he told the court. 

    The bank, through lawyer Fed Ojiambo, argued that the CS was engaging in tactics to delay the recovery of the loan. 

    “It is quite clear that the overall conduct of the plaintiffs in this matter has been to delay the hearing of the dispute while they continue to deprive the bank of its contractual rights.

    “My client has been prevented from accessing assets charged to it as security for a debt owed by the plaintiffs through their impunity and continuous disregard for the court orders,†Ojiambo told the court. 

    Part of the Ksh1.5 billion loan was aimed at constructing Ksh 100 million two-storey, flat-roofed housing units on a land that was estimated to cover a 20-acre land known as the Entim Sidai.

    The politician reportedly defaulted on the loan after the property market slowed down and property developers found it difficult to sell housing units.

    Broken down, the features of the Ksh100 million homes each included a jacuzzi in two master bedrooms that had a sunlight roofing.

    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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