Tuju alleges fresh plot to deny him justice

The troubles facing former Cabinet Secretary Raphael Tuju, appear far from over after a case scheduled for hearing at the Court of Appeal on Monday was removed from the day’s case list.

Tuju, who is embroiled in a property dispute over the Dari Business Park in Karen, Nairobi, claimed that he and his lawyers arrived at court on Monday morning expecting the matter to be heard at 9am, only to discover that it had been removed from the court schedule without explanation.

The case had been filed to challenge a decision by the High Court that cleared the way for auctioneers to evict him from the property over a financial dispute with the East African Development Bank.

Speaking at the contested property, where police officers have been stationed for days, Tuju expressed frustration over what he said was an attempt to deny him a fair hearing.

“When we went to court, my matter had been removed from the case list and they could not even tell me when the matter will next be coming. So of course that is to pre-empt any hearing of my matter and any positions on my matter so that the harassment which is happening here can continue,” Tuju said.

He said that the police had continued to block the main gate of the property, which houses several businesses including the Tamarind Restaurant, and that it had remained largely inaccessible since the weekend, disrupting operations for tenants.

At the centre of the dispute is a debt claim involving the East African Development Bank (EADB), which Tuju said originated from a loan he took years ago but which he insists he has made multiple attempts to settle.

According to Tuju, the initial loan amount was about 9 million dollars and he had even proposed a settlement of 12 million dollars, including interest.

“I have had four attempts to pay the loan. It was a 9 million dollars loan. We even reached a settlement, let me pay them 12 million. They did not disburse all the loan, but I still said let me pay 12 million including interest,” he said.

He claimed that despite the agreement being formally drafted by lawyers representing the lender, the amount demanded kept increasing over time.

“I also got investors from the Emirates who brought in 10 million dollars, but before we could settle, the amount moved to 14 million, then 16 million, then 18 million US dollars, and eventually 32 million US dollars was the last figure they came up with,” he said.

Tuju argued that the shifting figures made it impossible for him to settle the debt.

He alleged that the lenders were more interested in acquiring the land used as security rather than recovering the loan itself, arguing that the property had appreciated significantly in value.

“They don’t want the money, they want the land, because it is more valuable than the money which I owe them,” Tuju said.

However, EADB has defended its actions in the dispute with Dari Limited, stating that the borrower defaulted on a loan facility obtained more than a decade ago and that the bank had followed the law in enforcing recovery.

In a statement issued on Monday, EADB said that much of the commentary circulating in public discourse was grossly misleading.

According to the bank, Dari Limited secured a loan facility amounting to 9.19 million US dollars in April 2015 under a loan agreement negotiated by both parties and their legal representatives.

As security for the loan, the company’s shareholders and directors pledged several properties in Nairobi, which were formally charged in favour of the bank. The loan was subsequently drawn down on July 29, 2015, after the charges were duly registered.

However, the lender said the facility soon fell into default.

“As of the second quarter of 2016, the loan was in default, prompting the EADB to issue various demand notices to Dari Limited in November 2017 which were ignored and not honoured.”

The bank said it was eventually forced to pursue legal action in the High Court of Justice in England and Wales, the jurisdiction provided for under the loan agreement.