Last Updated on March 13, 2026 by courtnews reporter
High Court Clears Auction of Raphael Tuju’s Karen Hotels in Long-Running Loan Dispute
Updated: March 13, 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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Judge: Josephine Mongare
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Bank: East African Development Bank
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Dispute: Loan issued in 2015
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Properties involved: Entim Sidai Wellness Sanctuary and Tamarind Karen & Dari Business Park
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Decision: Court dismissed Tuju’s application and lifted orders blocking the auction
The High Court has cleared the way for the possible auction of luxury properties linked to former Cabinet Secretary Raphael Tuju in Karen after dismissing his application seeking to stop the sale.
Justice Josephine Mongare ruled that Tuju’s latest application amounted to an attempt to re-litigate issues that had already been decided by multiple courts in the long-running debt dispute with the East African Development Bank.
read:High Court Clears Auction of Raphael Tuju’s Karen Properties in Billion-Shilling Debt Dispute
High Court Lifts Orders Blocking Auction
In her ruling, Justice Mongare struck out Tuju’s application and vacated interim orders that had temporarily stopped the auction of the properties.
“The interim orders in place are hereby discharged and vacated forthwith. It is so ordered,” the judge ruled.
The decision allows the lender and appointed auctioneers to proceed with recovery efforts against properties used as collateral under the loan agreement.
Court Says Application Was Abuse of Process
The court found that Tuju, his company Dari Limited, and members of his family were attempting to reopen matters that had already been determined in previous court proceedings.
Justice Mongare stated that the application sought to re-hear an injunction already denied and reopen a debt that had already been adjudicated internationally and recognized locally.
“I find that the bank’s objection is well founded that this application is a blatant abuse of court process meant to frustrate its lawful recovery efforts after years of default and litigation,” the judge said.
The court subsequently struck out Tuju’s amended suit dated April 25, 2025.
Karen Properties Used as Loan Security
The properties at the center of the dispute include:
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Entim Sidai Wellness Sanctuary
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Tamarind Karen and Dari Business Park
The court noted that the properties, identified as L.R. No. 11320/3 and L.R. No. 1055/165, were pledged as security under the loan agreement between Tuju and the lender.
The ruling also highlighted that the properties had previously been subject to English judgment enforcement proceedings in Kenya as well as receivership processes.
read:Raphael Tuju and Mano Tuju, Alma Tuju, YMA Tuju Fined Sh100,000 Each in EADB Contempt Case
Earlier Court Battles and Contempt Proceedings
The dispute has been litigated in several courts over the years.
At one point, the High Court initiated contempt of court proceedings against Tuju and his associates after receivers were allegedly denied access to the secured properties.
Justice Mary Kasango previously ordered Tuju to show cause why he should not be committed to civil jail for failing to comply with court orders issued in March 2020.
The court later determined that the contempt issues had already been resolved and the parties punished accordingly.
Long-Running Loan Dispute
The case stems from a loan issued to Tuju in 2015, which later resulted in a legal dispute between the parties.
The lender initially pursued the matter in courts in England, where a judgment was issued in its favour. That judgment was later recognized and enforced by the High Court in Kenya.
Tuju later challenged the decision in the Court of Appeal but was unsuccessful.
A further attempt to escalate the dispute to the Supreme Court did not proceed after the judges handling the matter recused themselves from the case.
read:Raphael Tuju Files DCI Complaint Against Fred Ojiambo
What Happens Next
With the injunction lifted, the lender and auctioneers may now proceed with enforcement measures, including auctioning the Karen properties to recover the outstanding debt.
Legal analysts say the ruling could mark a significant turning point in one of Kenya’s longest-running commercial loan disputes involving a former senior government official.
Frequently Asked Questions
Why are Raphael Tuju’s properties facing auction?
The properties were used as security for a loan issued in 2015. The lender moved to recover the debt after alleged default.
Which properties are involved in the dispute?
The case involves Entim Sidai Wellness Sanctuary and Tamarind Karen & Dari Business Park, located in Karen, Nairobi.
What did the High Court decide?
The court dismissed Tuju’s application and lifted interim orders that had been blocking the auction.
Why did the judge dismiss the case?
The court ruled that the application attempted to re-litigate matters already determined by courts and described it as an abuse of the court process.
What happens next in the dispute?
With the injunction lifted, the lender may proceed with auctioning the properties to recover the debt.
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