For years, former super Cabinet Secretary Raphael Tuju has been a man at the centre of several troubles. From his divorce with his wife Ruth Akinyi to his properties being at the centre of forced eviction, Tuju has really seen it all.
Despite being a self-made Kenyan billionaire who once worked as a TV journalist, a Member of Parliament, and later served in government as a Cabinet Minister, his wealth has been widely discussed.
One of the issues that has been at the center of attention is one of his prime properties in Karen, which has been the subject of a dispute for nearly 10 years. Times Digital Kenya takes a look at why a section of Tuju’s Karen property has remained unfinished and embroiled in disputes for so many years.
Deal gone bad
By the time the former Rarieda Member of Parliament signed a Sh1.19 billion loan from the East African Development Bank (EADB) on April 10, 2015, it was expected that the Karen estate would be one of a kind not only in Kenya but also across the East African region.
Now, a decade later, everything has gone into the bin. The development project remains unfinished, the loan is yet to be paid, and both Tuju and the EADB are locked in wrangles for survival.
With the loan from the East African Development Bank (EADB), Raphael Tuju intended to fund the construction of 12 two-storey luxury bungalows and a 30-room retirement home, but the project has never been fully completed to this date.
According to Mr. Tuju and his team, the disagreements with the bank stem from the loan agreement’s terms and the bank’s alleged failure to fully disburse the agreed-upon amount.
In addition, Tuju says the EADB’s actions caused significant financial strain that has seen his dream of a real estate project in Karen fall apart, as well as affecting his reputation.
Stalled Construction
A decade after Tuju took the loan, construction of some additional units on his property stalled because the EADB reportedly withheld the final Sh294 million of the loan disbursement.
To date, the 12 bungalows and senior residence project, which was to be a 30-room retirement home, has never been finalized.
As such, Tuju maintained that the failure to complete the construction became a stumbling block to selling the units, which would have helped repay the loan. With Raphael Tuju unable to repay the loan, the court has authorized the auction of the property to recover over Sh2.2 billion in debt.
