East Africa Development Bank (EADB) on Monday moved to court to compel Raphael Tuju to service a loan owed to it.
A court in London had okayed an application by the bank to auction properties owned by the Dari LTD, a company associated with Tuju.
Through lawyer Githu Muigai, the bank now wants Justice Wilfrida Okwany to reinstate the order that would allow it to auction the properties.
Tuju, the bank argued, has not shown any willingness to repay the loan even after the court order.
In an affidavit filed by Ronald Makokha, the regional lender said Tuju could be developing the 20-acre parcel in Karen with a view to dispossessing the property, yet the titles have been charged to the lender.
“The applicant is therefore apprehensive that the respondent’s actions are intended to frustrate the chances of recovery by the applicant upon the registration and enforcement of the judgement,” Makokha said in an affidavit.
The bank gave the company the said amount of money in 2015 but no efforts have been made to repay the loan.
Court documents showed that the restaurant had entered into an agreement with the bank on April 10, 2015, under which it agreed to give Dari a $9.3 million (Sh943.9 million) loan.
However Tuju, through his company, has refuted claims that he's unwilling to repay the loan.
“EADB is fully aware that in the absence of the development of the housing units for sale as envisaged in the project proposal, Dari would not be able to service the loan facility,” he added.