Ailing Cabinet Secretary Raphael Tuju’s firm has been placed under receivership. Dari Limited, which is based in Karen, was placed under receivership over a Sh. 1.6 billion debt that the cabinet minister owes the East African Development Bank, EADB.
The court order to place the firm under receivership also saw an order issued stopping the auction of Tuju’s property.
In the ruling Justice Grace Nzioka had argued that it was not possible for the receivers and directors of the firm to run the company together. EADB had appointed Muniu Thoithi and George Weru as receiver managers on December 23, 2019 to manage Dari Ltd in Karen.
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The Karen property linked to Dari Limited is said to be worth Sh. 1.8 billion.
“EADB is demanding Sh. 1.6 billion from Tuju following a botched loan deal. The loans were targeted for the construction of Sh. 100 million two storey, flat-roofed bungalows sitting on a 20-acre forested land dubbed Entim Sidai and purchase of a 94-year-old bungalow built by a Scottish missionary, Dr Albert Patterson, which currently operates as a high-end restaurant.
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But development of the 12 luxury homes worth Sh. 1.2 billion has fallen behind schedule, setting the stage for defaults and asset seizures” said a report that appeared in a local daily on Tuesday.