In a dramatic turn of events, the Supreme Court has given the green light for the East African Development Bank (EADB) to seize and auction former Cabinet Secretary Raphael Tuju's luxurious Karen properties, dealing a crushing blow to the embattled politician.
The move comes in response to a Sh4.5 billion debt incurred from a botched loan deal.
A bench of five judges at the apex court disqualified themselves from the case, reinstating a previous decision by the Court of Appeal that dismissed Tuju's appeal against the enforcement of the loan.
The judges cited accusations of bias and predetermined outcomes as reasons for their recusal.
“Having arrived at the inescapable conclusion that we are being accused of bias and working towards an undisclosed predetermined outcome, we are strongly persuaded that our further participation in these proceedings would not serve the ends of justice, at least in the eyes and perception of the appellants,” the court ruled.
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“Consequently, and inevitably, each of us on this Bench does hereby recuse him/herself from further participation in the hearing and determination of the appeal dated 25th April 2023 and filed on 26th April 2023."
The decision marks a crucial development in the ongoing legal battle between Tuju and EADB.
The lender has been seeking to recover the outstanding debt, which includes both the principal amount and accrued interest.
In an attempt to halt the auction, Tuju had argued that he had not been served with the necessary legal notices.
However, his efforts were unsuccessful, as the High Court dismissed his challenge.
In their judgement, the Court of Appeal judges remarked, “At the end of it all, we think the appellant is merely hanging onto technicalities in order to avoid his just obligations arising from the contract of guarantee.”
The auctioneer, Garam Investments Auctioneers, has put one of Tuju's hotels in Karen up for sale.
The property, Entim Sidai Wellness Sanctuary, is valued at Sh24,497,200.
The dispute between Tuju and EADB dates back to 2015 when the former secured a loan from the bank for business expansion.
However, Tuju has failed to meet his repayment obligations, leading to multiple legal confrontations.
The matter has traversed through the judicial systems of both the United Kingdom and Kenya.
The Supreme Court's decision is the latest development in this ongoing legal saga.