Raphael Tuju taken to a London Court over Sh1.4 billion unpaid loan for Dari Restaurant

CS (without portfolio) Raphael Tuju has been mentioned in a Sh1.4 billion claim presented before a London Court.

CS Tuju, who guaranteed a Sh951.6 million loan to Dari Restaurant in Karen, is accused of failing to ensure the facility paid back the loan according to an agreement with the East African Development Bank.

The Jubilee Party Secretary-General is listed as a director of the restaurant and is said to have agreed to guarantee the loan on a full indemnity basis.

Raphael Tuju taken to a London Court over Sh1.4 billion unpaid loan for Dari Restaurant ece-auto-gen

Tuju's restaurant in London court

The suit is being heard at the Queen's Bench Division of the High Court of Justice of England and Wales.

Dari had earlier argued that the interest due quoted by the bank, which brought the full amount repayable to Sh1.4 billion, could not be claimed suggesting that the bank had inflated the amount due as punishment for defaulting.

The judge, however, threw the argument out saying: "The court is in a position that the rate of default interest is not penal and that the proposed defence does not have a real prospect of success."

The hearing of the case is ongoing, with the bank seeking to have Dari Restaurant compelled to settle the full Sh1.4 billion which continues to accumulate.