Ksh. 1.4 Billion Loan

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Demand From Raphael Tuju Restaurant By EADB

Jubilee secretary general Raphael Tuju is in trouble as the East African Development Bank (EADB) is seeking more than Ksh1.4 billion following failed loan deal.

The bank has filed the case before a London court seeking to force Karen-based Dari Restaurant to offset the Sh1.4 billion loan. This includes the principal and loan interest.

The bank is saying that the loan was advanced on July 31st 2015 at Ksh951 million and has remained in nonpaid since 2017 when it fell due.

Dari Restaurant has since appealed against a decision by a London court. It dismissed its opposition to the bank claim, setting the stage for the bank to seek enforcement, including possible auction.

According to a court statement the restaurant entered into an agreement with the bank on April 10th 2015 and agreed to give Dari a loan of Ksh962 million.

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.

In the agreement, the restaurant agreed to repay the loan in 20 consecutive installments. The deal gave the restaurant a 24-month grace period, which fell due in 2017.

But two years later, Dari had failed to pay $1.8 million (Sh186 million) in interest owed, adding that Dari Restaurant had ignored a notice to clear the debt.

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Author

Timothy Omondi