The High Court of Kenya has given a status quo order in the case between the East African Development Bank and former Cabinet Secretary Raphael Tuju.
The orders were issued by Milimani Commercial and Tax Division Judge Alfred Mabeya in response to the Tujus’ request for a court-supervised mediation process to resolve the matter peacefully.
The bank, however, is said to have walked away without any explanation.
The applicants expressed their worries that if the court did not issue the orders, EADB would take over Dari Properties which would unfairly cause injustice and irreparable harm to them.
This is considering that the bank obtained orders from the court to take over the properties, which it holds as security over some Sh2.2 billion owed to it.
In its judgment, the Supreme Court said EADB was capable of compensating Tuju if need be.
However, Tuju moved to the current high court, seeking supervision for a resolution through the Court Annexed Mediation under the Civil Procedure Rules, 2022.
“In the circumstances, Court Annexed Mediation is the best way of ensuring that the dispute between the parties hereto that involves a substantial amount of money is settled in the shortest time possible,” the application filed in court reads.
The applicants argued that EADB and the other listed respondent George Weru, would not suffer prejudice as the former holds charges and security of the property as per the April 10, 2015 agreement.
This is when the UK-loan deal was inked between EABD and Dari, from which the dispute arose.
The applicants however said they could suffer prejudice as recovering any losses from the bank would be impossible and would lead to irreparable loss and damage.
They also said they were not sure of the amount they had to pay to settle the debt.
They told the court that a valuation on October 11, 2023, showed that the Tree Lane Property is valued at Sh3,210,000,000, which on the current market is US$21,543,624.
The Ngong Road property is valued at Sh998,000,000 and US$6,695,740 in the current market.
