Hospitalized Raphael Tuju’s Ksh 1.6 Billion Debt scares Bankruptcy Lawsuit

Jubilee Secretary-general Raphael Tuju. PHOTO | BMS

Jubilee Secretary General Raphael Tuju under pressure over a loan he took on 2015 that is yet to be repaid. The CS who is hospitalized in London over an accident that occurred when he was travelling for the Late President Moi burial, has left his children in a sorrowful way.


The East African Development Bank (EADB), which Tuju owes the money, has now sent a charge notice to Mano Tuju, Alma Tuju and Yma Tuju demanding the payment of Ksh 1.6 billion with interest. The bank has frightened to file a bankruptcy suit against the children in the event the father fails to pay the loan.


The loan was intended for the construction of Ksh 100 million two-storey, flat-roofed bungalows sitting on a 20-acre forested land. Part of the loan was also proposed to buy a 94-year-old Bungalow built by a Scottish missionary and currently operates as a high-end restaurant.


Though, the construction of the 12 luxury homes worth Ksh 1.2 billion has fallen behind schedule setting stage for defaults and asset seizures.


Mr Tuju himself had challenged the bank of disbursing Sh932.7 million rather than the agreed Sh943.9 million, adding that the bank had reneged on the plan to offer Sh294 million for building the luxury homes for sale.


“The failure on the part of the creditor to comply with the law and to acknowledge the full extent of the securities held is selective disinformation and is willfully designed to mislead the court and ultimately to rob the debtor of their constitutional right to property,” said Mano, one of Tuju’s children.