After a seven-year dispute, the hammer has finally fallen. The East African Development Bank (EADB) has auctioned off property linked to former Cabinet Secretary Raphael Tuju, following a default by his firm, Dari Limited, on a Kes1.9 billion loan used to develop the land.

"At no point, over the course of this seven-year-long dispute, has the EADB received any credible or verifiable repayment offer from the debtors as have been alleged," the bank said in a statement on Monday.

According to the regional lender, Dari Limited secured a Kes1.2 billion loan in 10th April, 2015. “As security for the facility, Dari Limited shareholders and directors pledged various properties they owned in Nairobi, which were subsequently charged to the Bank. Subsequently, the loan was drawn on the 29th of July 2015 pursuant to the terms of the Facility Agreement, after the charges were duly registered in favour of the Bank,” EADB revealed.

However, the firm linked to the former CS defaulted on the loan in the second quarter of 2016, prompting EADB to issue demand notices in November 2017, which were neither honoured nor responded to.

The lender then sought legal redress at the High Court of Justice in the United Kingdom. On June 19, 2019, the court awarded the bank about Sh2 billion, covering the principal amount, accrued interest and penalties.

The High Court of Kenya recognised and adopted the UK judgment on February 13, 2020, a decision later upheld by the Court of Appeal on April 20, 2023.

“Consequently, under the terms of the charge, the Bank successfully auctioned the Ngong Road property that had been pledged by Dari Limited as security on October 1, 2024, after following all due processes and the highest bidder purchased the property. At the time, there were no court orders preventing the sale of the property at the auction,” EADB said.

Following the auction, Dari Limited filed a suit against the bank and its service providers, challenging among other issues the valuation of the property. The company was granted an interim injunction covering properties that had not yet been sold.

However, in a ruling delivered on March 9, 2026, the High Court struck out Tuju’s case, effectively lifting the interim orders.

The affected properties include Entim Sidai Wellness Sanctuary (LR No. 11320/3, off Tree Lane, Karen), Tamarind Karen, and Dari Business Park (LR No. 1055/165, off Ngong Road, Karen).

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