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Tuju opposed to UK court judgement enforcement in Kenya on Sh1.5bn debt

Raphael Tuju, the Jubilee Party Secretary General. /CFM-FILE.

NAIROBI, Kenya Jan 29 – Jubilee Secretary General Raphael Tuju has come out fighting to have a foreign judgment entered against him over a loan advance of Sh1.5 billion set aside.

Through his lawyers Senior Counsel Paul Muite and Paul Nyamodi, Tuju who is a former Foreign Affairs Minister, said the judgment which East African Development Bank is demanding Sh1.5 billion cannot be enforceable in Kenya.

The judgment was delivered by a High Court of Justice in England of Wales and same can not be executed in Kenya, he argues.

Tuju’s counsels, told Justice Winfridah Okwany, the court delivered a summary judgment and their client was denied an opportunity to defend himself as required by law.

The court heard that the presiding judge was biased and had a close relationship with the barrister who represented the bank.

“The judge, Barrister and the daughter of the chief officer lived in same chamber and one would have expected justice to be entered in favor of Tuju,” the said.”

The court heard that the bank supported with East Africa Community should have filed its claim within East Africa court of justice.

The court will deliver its ruling on February 13 as to whether the judgment will be set aside or not.
East African Development Bank moved to the High Court to enforce a decision issued by a UK judge and seek to recover Sh1.5 billion from Tuju.

Appearing before Justice Okwany, the bank through Prof Githu Muigai said they were apprehensive of failing to recover the money, especially after learning that Tuju and his company Dari ltd were in the process of subdividing and construction of houses on two parcels of land, which was used as security to secure the loan.

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In an affidavit filed by Ronald Makokha, the regional lender said Tuju could be developing the 20-acre parcel in Karen with a view to dispossessing the property, yet the titles have been charges to the lender.

“The Applicant is, therefore, apprehensive that the respondent’s actions are intended to frustrate the chances of recovery by the applicant upon the registration and enforcement of the judgment,” Makokha said in an affidavit.

Prof Muigai told Justice Okwany that the Cabinet Secretary and his company lost the appeal before the UK court and in his view, they have satisfied the requirement for the judgment issued by deputy judge of the High Court Daniel Toledano, QC on June 19, 2019.

In the matter, the bank accused Dari ltd of defaulting in repayment of a loan of USD 9.3 million granted to the company in 2015, thereby breaching the obligation under the said agreement.

Court documents showed that Dari ltd entered into an agreement with the bank on April 10, 2015, under which it agreed to give Dari a $9.3 million (Sh943.9 million) loan.

The bank said it issued a demand for the immediate repayment of the loan, after getting the judgment in UK but the company has failed to honour the same.

“The application should be allowed as prayed lest the bank is left without a remedy against the respondents, who will escape their financial obligations. That chances of recovering the money will diminish unless court grants the orders as sought,” Prof Muigai said.

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