Raphael Tuju Net Worth: A prominent bank is seeking over Sh. 1.4 billion from a restaurant that is associated with Jubilee secretary-general Raphael Tuju.
According to a report that appeared in the Business Daily on Thursday, the East African Development Bank (EADB) is seeking the money after a botched loan deal.
“The bank has filed the case before a London court seeking to compel Karen-based Dari Restaurant to offset the $13.6 million (Sh. 1.4 billion) loan, which includes the principal and loan interest. The bank says the debt, which it advanced on July 31, 2015 at $9.19 million (Sh. 951m), has remained in default since 2017 when it fell due,” says the report.
It further says that following the claim, Dari Restaurant has appealed against the decision by a London court that set the stage for the bank to seek enforcement, including possible auction.
“Court documents showed that the restaurant entered into an agreement with the bank on April 10, 2015, under which it agreed to give Dari a $9.3 million (Sh. 962 million) loan. Tuju and a firm known as S.A.M Company Ltd signed a deal under which they promised to guarantee the payment obligations on a full indemnity basis. According to court documents filed at the Queen’s Bench Division of the High Court of Justice of England and Wales, the bank said it had advanced Dari $9.19 million (Sh951.6 million) on July 31, 2015. The documents further showed that $102,916 (Sh10.6 million) , which was part of the deal, was cancelled. In the agreement, the restaurant allegedly agreed to repay the loan in 20 consecutive installments. But the deal gave the restaurant a 24-month grace period, which fell due in 2017,” says the report in the BD.
However, says the report, two years later, Dari had failed to pay $1.8 million (Sh. 186 million) in interest owed, according to the bank, adding that Dari Restaurant had ignored a notice to clear the debt.