Jubilee Secretary General Raphael Tuju has deposited Ksh50 million in court in a bid to stop auctioneers from seizing his property in Karen over a Ksh1.6 billion loan dispute.
The Court of Appeal had last month ordered Tuju to deposit the money within 30 days to stop the East African Development Bank from auctioning his assets.
In a letter to Registrar of the Court of Appeal, the cabinet secretary without portfolio through his lawyer, said the amount had been deposited in a joint-interest earning account at NCBA bank.
“We write to confirm that this condition has been complied with. Our clients have deposited Kshs.50,000,000 in an interest earning account at NCBA Bank Kenya,” the letter reads.
The deposit has now secured Tuju a chance to argue the loan dispute in court while retaining his property.
The dispute stems from a loan agreement when his company, Dari Ltd, borrowed from the bank on April 10, 2015, under which the lender agreed to give Dari a $9.3 million (Ksh943.9 million).
Kahawa Tungu understands that part of the deal was to fund the acquisition of a property in Karen known as Tree Lane and for development and construction of residential units. But Tuju’s company fell out with the bank.
The loan has accumulated huge penalties after being defaulted in 2017.
After the default, the bank resorted to filing a case before a London court seeking to compel Tuju-owned restaurant to pay the loan together with the accumulated interest.
The court ruled in favour of the bank, opposing Dari Restaurant’s stand to object to the claims made, creating room for a possible auction.