Jubilee Party Secretary-General Raphael Tuju has moved to court over his property tussle with East Africa Development Bank, in a row involving Sh1.53 billion.
The former Rarieda MP had moved to court to block the bank from auctioning Tuju's property after his failure to repay the loan given.
Tuju, through his company Dari Limited, sought to use the money to develop luxury homes in Nairobi's Karen Suburb, which the bank says was due in 2017.
On December 23, the bank appointed 23 receiver managers to spearhead the sale of Dari Limited's assets, but Tuju on December 24 obtained a court order blocking the same.
"In complete disregard of the deliberate efforts by the plaintiffs (the Tujus) to return the project on profitable trading, the defendant (EADB) has proceeded to appoint receiver managers over all the assets of the plaintiff to engage in the sale and realization of the plaintiff assets and properties as its primary option,” Tuju said in court papers filed before Justice Maureen Odero.
However, Tuju's court order expired on Friday.
In the suit, he also accused the bank of blocking Zlivia, a Dubai-based bank, from investing in the property.
"The defendant is frustrating the plaintiff’s efforts to secure alternative funding thereby clogging the plaintiffs right to redeem the facility,” further reads the papers.
However, the bank says that some of the projects included in the loan application are non-existent.
These include the proposed housing units for sale. The money was also to be used to put up two-storey flat-roofed bungalows on a 20-acre piece of land named Esim Sidai.
Further, 12 luxury homes were to be put up at Sh1.2 billion, as well as the purchase of a high-end hotel, modified from a 95-year-old bungalow built by Scottish missionary Dr Albert Patterson.
Tuju and his children are the directors of Dari Limited.