Jubilee General Secretary Raphael Tuju and his children sued the bank, claiming Ksh 3.1 billion for violating mutual agreement.
In a case filed in the High Court by the East African Court of Justice (EACJ) in Arusha, Tuju alleges that along with his children, he suffered irreparable damage after the bank openly violated the agreement.
The bank agreed in 2015 to give Tuju a loan of Ksh 1.2 billion through its Dari restaurant for the purchase of a 22-acre forest called Entim Sidai in Karen and the purchase of a 94-year-old bungalow.
Tuju had also asked the same bank for another loan of Ksh 943 million to fund his plan to acquire property previously owned by Scottish missionary Albert Patterson, which had a state-of-the-art restaurant and 14 rooms.
The Jubilee secretary general had planned to spend a portion of 294 million dollars to fund the construction of 12 two-story luxury homes that will sell for 100 million shillings each.
Tuju in his case alleges that the bank’s failure to disburse the funds caused the project to go back and his company failed to pay, resulting in the foreclosure of its assets.
Tuju in court documents also said that being sure he would get a loan, he sold four houses that had no plan, where future owners paid in installments. But, he adds, the bank’s failure to disburse Ksh294 million caused the project to collapse, forcing it to reimburse the money invested in the project.
“We had assured to sign an agreement and the bank agreed to ensure that the 1.2 billion shilling scheme is implemented so that we do not risk losing 10 percent of the land. .
Tuju further states in court documents that the bad plan resulted in him losing a Dubai-based investor who was willing to invest in the project.
The bank sued Tuju in the British Supreme Court and surged the case. The bank was seeking to auction Tuju, but the decision was overturned by the appellate court.
He decided to file a lawsuit with the EACJ after the bank opposed his appeal, obtaining immunity from prosecution in local courts.