Raphael Tuju Clarifies Ksh1.2 Billion EADB Loan Dispute
Former Cabinet Minister Raphael Tuju has addressed concerns over his Ksh 1.2 billion loan dispute, stating that he borrowed the money for a project rather than to buy property.
During a radio interview, Tuju underlined that banks do not provide loans only for the purpose of purchasing property. He was provided the funds for the project.
“The loan was given based on a project proposal, which the bank evaluated. For that evaluation alone, I paid Ksh 4.7 million,” he said.
“Then they brought in an auditing firm to assess whether the project was viable, and I paid them Ksh 2 million.”
Raphael Tuju clarifies his loan dispute:
— SpiceFM (@SpiceFMKE) March 24, 2025
“I didn’t take a loan to buy property; I took a loan for a project. The bank approved 1.2B. 900M for land, 300M for development, plus my 100M contribution. They paid for the land but withheld the development funds, violating our… pic.twitter.com/0ZtJOiiKbt
Tuju is in a court struggle with the East African Development Bank (EADB) over a disputed 27-acre plot of land in Karen.
He explained that once the audit company certified the project’s viability, the bank’s board approved a loan of Ksh 1.2 billion.
“They approved Ksh 1.2 billion—Ksh 900 million was for buying the land, and Ksh 300 million was for developing the project. I also contributed Ksh 100 million from my own money,” he said.
However, he said that the bank paid the land seller Ksh 900 million but refused to release the remaining Ksh 300 million for development.
“They paid the vendor Ksh 900 million and then refused to disburse the Ksh 300 million. That was a violation of the contract,” he added.
Tuju claims the bank is now demanding repayment of the loan, despite the fact that he did not get the whole amount.
“I didn’t get the Ksh 300 million, yet they are still asking me to pay the loan. They are blackmailing me, and I refused to give in,” he said.
He further stated that the case was initially dismissed by the Supreme Court because it was too complicated, requiring him to appeal to a lower court.
“In the lower court, more evidence emerged, showing they had made several mistakes, which is why some judges had to step down from the case,” he said.
Tuju claimed that after the bank validated his project’s viability, they handed him Ksh 500 million to continue.
“I paid Ksh 900 million to refund the money because it was disbursed in my name,” he said.
“But they refused to acknowledge the payment and now demand additional interest and legal fees totalling Ksh 1.5 billion.”
According to Tuju, after he made the payment, the bank’s board reassessed the situation and raised the sum to Ksh 2 billion.
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He also accused certain board members of receiving loans from the same bank and then having their loans canceled.
“The problem is that I refused to comply with their blackmail. They even asked if they could get shares in my business after I had already taken the loan,” he added.
On July 24, an EADB officer, David Adongo, confirmed that the bank did not disburse a portion of the financing for Tuju’s Karen Villas project.
Adongo also stated that the second tranche of Ksh 294 million was earmarked for building but was never disbursed.
Raphael Tuju Clarifies Ksh1.2 Billion EADB Loan Dispute
