Last Updated on March 12, 2026 by courtnews reporter
Court Clears Way for Auction of Raphael Tuju’s Multi-Billion Karen Properties in Debt Dispute
Updated: March 12, 2026 | CourtNews Kenya
Quick Summary
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Person: Raphael Tuju
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Court: High Court in Nairobi
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Debt: About KSh 1.9–2.2 billion loan dispute
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Lender: East African Development Bank
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Properties at risk: Entim Sidai Wellness Sanctuary and Tamarind Karen complex
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Decision: Court dismissed Tuju’s suit and allowed auction process to proceed
A Nairobi court has cleared the way for the auction of multi-billion-shilling properties linked to former Cabinet Secretary Raphael Tuju after dismissing a legal attempt to block the sale over a long-running debt dispute.
High Court Dismisses Tuju’s Application
The High Court struck out a suit filed by Tuju and his company Dari Limited, which had sought to stop the sale of prime Karen properties used as collateral for a loan.
The case involved efforts by the East African Development Bank to recover billions of shillings owed after a loan taken in 2015 went into default.
In the ruling, the court held that the issues raised in the application had already been determined in earlier legal proceedings.
Justice Josephine Mongare ruled that the suit amounted to re-litigation of matters already decided by multiple courts.
Multi-Billion Karen Properties at Risk
Among the properties facing possible auction are:
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Entim Sidai Wellness Sanctuary located in Karen
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Tamarind Karen and Dari Business Park along Ngong Road
These properties were pledged as security for the loan facility advanced to Dari Limited.
The lender moved to enforce the security after the borrower allegedly defaulted on repayment obligations.
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Decade-Long Debt Dispute
The legal battle stems from a loan agreement signed in April 2015, when Dari Limited secured funding from the East African Development Bank to finance property development in Nairobi.
Following default, the lender sought recovery through courts in multiple jurisdictions.
In 2019, a commercial court in England ordered repayment of more than $15 million, a judgment later recognised by the Kenyan High Court, enabling enforcement of the debt locally.
Subsequent appeals in Kenyan courts, including at the Court of Appeal and the Supreme Court, failed to stop the recovery process.
Court Says Case Was Already Decided
In dismissing the latest application, the court said the plaintiffs were attempting to reopen issues already settled.
The judge noted that Tuju’s case effectively sought to:
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Re-litigate injunction requests previously denied
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Challenge a debt already confirmed by courts
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Delay the lender’s enforcement process
As a result, the court struck out the suit and lifted interim orders that had temporarily blocked the auction.
What Happens Next
With the case dismissed, the lender and auctioneers are now free to proceed with recovery measures, including the possible sale of the properties.
Legal analysts say the ruling could effectively mark the end of one of Kenya’s longest commercial debt disputes involving a former senior government official.
Frequently Asked Questions
Why are Raphael Tuju’s properties being auctioned?
The properties were used as collateral for a loan from the East African Development Bank that allegedly went into default.
Which properties are involved in the dispute?
Key properties include Entim Sidai Wellness Sanctuary and Tamarind Karen and Dari Business Park in Nairobi’s Karen suburb.
What did the High Court decide?
The court dismissed Tuju’s suit and allowed the lender to proceed with recovery, including auctioning the properties.
How long has the case been in court?
The dispute has lasted nearly a decade since the loan was issued in 2015.
Why This Case Matters
The ruling highlights how Kenyan courts enforce loan agreements and international judgments involving commercial debt disputes.
It also underscores the risks faced by borrowers who pledge high-value property as collateral in large financing arrangements.
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