Jubilee Party Secretary has received a short reprieve after the court of appeal suspended bankruptcy proceedings over an Sh1.6 billion debt.
With the Friday decision by the court, the ongoing bankruptcy case pending at the High court will not proceed until an appeal filed by Tuju is heard and determined.
Justices Hannah OKwengu, Peter Kiage, and Agnes Murgor also suspended enforcement notices that would have seen the East Africa Development Bank (EADB) seize Tuju's assets for the loan advanced to his company, Dari Limited.
According to the judges, the bankruptcy proceedings and the enforcement notices are all anchored on the United Kingdom (UK) decision, which arises from a loan facility agreement between Tuju and EADB.
"Therefore, unless an order staying the proceedings is granted, Tuju's appeal will be rendered nugatory," the judges ruled.
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Facing threats of an auction, Tuju, alongside his children, have been fighting in court to prevent the auction of their property. They wish to declare themselves bankrupt to avoid auctioning of their property.
The cases arise out of an Sh1.5 billion loan, which Tuju defaulted. The East Africa Development Bank issued the loans where his children acted as guarantors.
In January, Justice Wilfrida Okwany accepted a UK court judgment against Tuju over the debt.
The court, after hearing his matter, halted the implementation of the judgment by the United Kingdom court to attach his property. Tuju later appealed the decision stating that he was dissatisfied.
