Raphael Tuju has spoken out about his ongoing loan dispute, clarifying that he borrowed Ksh 1.2 billion for a project rather than for purchasing property. He explained that banks do not only offer loans for buying land but also for funding business ventures.
During a radio interview, he emphasized that the loan was granted after the bank thoroughly assessed his project. He paid Ksh 4.7 million for the bank’s evaluation and an additional Ksh 2 million for an audit firm to determine the project’s viability.
Tuju is currently in a legal battle with the East African Development Bank (EADB) over a 27-acre land parcel in Karen. He explained that after the audit company confirmed the project’s feasibility, the bank’s board approved the loan. Out of the Ksh 1.2 billion, Ksh 900 million was allocated for purchasing the land, while Ksh 300 million was meant for developing the project.
He also contributed Ksh 100 million from his own funds. However, he claims that while the bank disbursed Ksh 900 million for the land purchase, it refused to release the remaining Ksh 300 million for development, which he sees as a breach of contract.
Tuju insists that despite not receiving the full amount, the bank still demands repayment of the entire loan.
He believes he is being blackmailed into making payments he does not owe and has refused to comply. The case has faced complications in court. He explained that the Supreme Court initially dismissed the case because of its complexity, forcing him to seek justice in a lower court.
He claims that in the new proceedings, additional evidence surfaced, revealing irregularities in the way the bank handled the loan.
According to him, some judges even had to recuse themselves due to conflicts of interest.Tuju further stated that after his project’s viability was confirmed, the bank released Ksh 500 million for continuation. He claims that he repaid Ksh 900 million, as the loan had been issued in his name, but the bank refused to acknowledge the payment. Instead, he alleges that they increased the amount owed by adding interest and legal fees, inflating the total to Ksh 1.5 billion. He also accused the bank of unfair practices, saying that after he had already taken the loan, some board members attempted to gain shares in his business.
According to Tuju, after he made the repayment, the bank’s board reviewed the matter again and raised the total amount owed to Ksh 2 billion. He also alleged that certain board members of EADB had taken loans from the bank and later had them canceled.
He believes his refusal to bow to pressure led to the current situation, where he is being unfairly targeted. He maintains that he was asked to give up shares in his project as a form of settlement, which he declined.
EADB officer David Adongo recently confirmed that the bank never disbursed the remaining Ksh 300 million intended for construction. He acknowledged that Ksh 294 million was supposed to be released in the second phase but was withheld.
The case remains unresolved, with Tuju fighting to prove that the bank acted in bad faith while demanding payments for funds he never received.
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