The High Court has given the East Africa Development Bank (EABD) the go ahead in auctioning Raphael Tuju’s Sh. 1.53 billion Hotel. The Jubilee Secretary general has been embroiled in a legal tussle with the bank over the property. Tuju had gone to the High Court after which Justice Maureen Odera gave temporary orders barring the East Africa Development Bank from operating or selling the multi million dollar hotel at Karen suburb
Raphael Tuju had taken the loan for the development of luxury bungalows on a 20-acre forested land in Karen. But the development of the luxury hotel worth over Sh. 1.2 billion stalled rendering Tuju unable to service the loan as per the contract. The lender sought an order from a London court for the auction of property to recover the loan plus interest. But Tuju went to court arguing that EADB was unreasonable to demand repayment when the property had not been developed.
“In complete disregard of the deliberate efforts by the plaintiffs to return the project on profitable trading, the defendant (EADB) has proceeded to appoint receiver managers over all the assets of the plaintiff to engage in the sale and realization of the plaintiff assets and properties as its primary option,” Tuju said in court papers .
Today’s ruling is a blow to the embattled Jubilee Secretary general and paves way for the auctioning of Tuju’s properties to recover the loan