Thursday October 24, 2019 - Jubilee Secretary General, Raphael Tuju, is in big trouble after his hotel was sued in London for nonpayment of a loan.
The East African Development Bank (EADB) moved to a London court to force Tuju’s restaurant to honour its loan obligation.
Dari Restaurant, an eatery located in Karen, is required to clear Sh1.4 billion, which is a loan summing up the principal advanced and the accrued interest.
EADB, at the Queen’s Bench Division of the High Court of Justice of England and Wales, states that the amount loaned out on July 31, 2015 was Sh 951m and has been defaulted since 2017 making it increase to the current debt.
S.A.M Company Ltd and Tuju agreed to be guarantors on a full indemnity basis making him partly liable to repay the loan.
According to court papers, the restaurant linked to Tuju agreed to repay the amount advanced and interest accrued in 20 instalments.
There was also a 24-month grace period included in the deal.
However, the grace period expired in 2017.
The restaurant is accused of defaulting in the loan repayment and breach of the agreement.
Dari Restaurant appealed the ruling by the London court.
“The court is in a position [to conclude] that the rate of default interest is not penal and that the proposed defence does not have a real prospect of success,” the judge ruled.
The Kenyan DAILY POST