Raphael Tuju to be declared bankrupt as his Karen Mansion taken by East African Development Bank

Jubilee SG Raphael Tuju to be declared Bankrupt. FILE

High Court rejects a request by Jubilee SG Raphael Tuju to stop bankruptcy proceedings against him over a debt of Sh1.6 billion, court says the proceedings are unstoppable if he fails to pay.


He claimed that the Court of Appeal had stopped all the cases related to the sum owed to the East African Development Bank (EADB), including a trial by the bank to have him declared bankrupt.


EADB had also filed an application seeking to allow receiver managers to acquire the politician's property in Karen and contempt of court case against him, for barring the managers from accessing the premises.


But Justice Mary Kasango ruled yesterday that the Court of Appeal only suspended an order requiring Mr Tuju to pay Sh1.6 billion, on condition that he deposits Sh50 million in an interest-earning account, within 30 days. The judge said it was not clear whether the politician deposited the amount.


Mr Tuju and his children moved to court on January 10, after the bank gave them 21 days to pay $16,550,608 (Sh1.618 billion) with interest, failing which the bank threatened to file bankruptcy suit against them.