East African Development Bank (EADB) has moved to a London court to force a restaurant linked to Jubilee Secretary-General Raphael Tuju to honour its loan obligation.
Dari Restaurant located in Karen is required to clear Sh1.4 billion, which is a loan summing up the principal advanced and 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 Sh951m 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 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 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.