Jubilee Secretary General Raphael Tuju is in trouble following a botched loan deal associated with his Karen based Dari Restaurant.
The East African Development Bank (EADB) is now demanding Sh1.4 billion loan that has accumulated after being defaulted since 2017.
According to the bank, the loan was advanced on July 31, 2015 at Sh951 million and has been defaulted since 2017, accumulating huge amounts of interests.
The bank then resorted to filing a case before a London court seeking to compel the Tuju-owned restaurant to pay the loan together with the accumulated interest.
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The court ruled in favor of the bank, opposing Dari Restaurant’s stand to object to the claims made, creating room for a possible auction.
Dari Restaurant has already appealed the decision reached by the London Labor Court in a bid to save itself from possible auction.
The court documents obtained by a local daily indicated that the Jubilee Secretariat Tuju and a firm known as S.A.M Company Ltd signed a deal in agreement to payment obligations.
The documents proved that Queen’s Bench Division of the High Court of Justice of England and Wales, the bank said it had advanced Dari $9.19 million (Sh951.6 million) on July 31, 2015.
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The restaurant is said to have complied to the agreed terms of repaying the loan in 20 months installment.
“The court is in a position [to conclude] that the rate of default interest is not penal and that the proposed defense does not have a real prospect of success,” the judge ruled.
In the suit, the Bank faults the restaurant including Tuju for failing to meet their end of the bargain of the loan, hence breaching their own obligations.
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