A dramatic property showdown involving former Cabinet Secretary Raphael Tuju has thrust one of Kenya’s most protracted financial disputes back into the national spotlight, after a High Court ruling cleared the way for the seizure and auction of some of his prized Karen properties.
The confrontation reached a dramatic crescendo when Tuju, visibly defiant, confronted individuals who claimed to represent new owners of one of the properties at the upscale Dari Business Park. In videos widely circulated on social media, the former minister declared that anyone seeking to evict him would have to “kill me first.”
The fiery exchange followed a court decision that effectively lifted legal barriers preventing the sale of assets tied to a disputed loan owed to the East African Development Bank (EADB).
At stake is a debt that has ballooned from about Sh1.9 billion to more than Sh4 billion over a decade of litigation, interest accumulation and penalties. The contested assets include the famed Entim Sidai Wellness Sanctuary and the Dari Business Park complex in Karen—prime real estate that once anchored Tuju’s ambitious hospitality venture.
The roots of the dispute trace back to 2015 when Tuju’s company, Dari Limited, secured a loan facility worth roughly $9.3 million from the East African Development Bank.
The funds were intended to finance a high-end real estate and wellness development in Karen. The project envisioned a boutique hospitality destination anchored around the Entim Sidai sanctuary and Dari restaurant, alongside luxury villas that would be built and sold to repay the loan.
To secure the financing, several prime Karen properties were pledged as collateral.
The loan agreement was structured in phases. The first tranche was released for land acquisition and initial development. A second tranche—estimated at about Sh294 million—was intended to fund the construction of villas.
However, the relationship between lender and borrower soon deteriorated.
Tuju has consistently argued that the bank failed to release the second tranche of funds required to complete the project. Without that capital injection, he maintains, the business model collapsed and repayment became impossible.
Officials at the bank, however, have maintained that the additional funding was never released because the borrower failed to meet contractual conditions required for further disbursements.
The dispute quickly escalated into an international legal battle after the loan went into default.
In 2019, a commercial court in the United Kingdom issued a summary judgment ordering Dari Limited to repay more than $15 million, including accumulated interest and charges.
Kenyan courts subsequently recognized the foreign judgment, clearing the way for enforcement proceedings locally.
From that point onward, Tuju and his companies launched a series of legal challenges aimed at blocking the seizure and sale of the properties.
Applications for injunctions were filed repeatedly in Kenyan courts, raising claims of procedural irregularities, disputed valuations and alleged constitutional violations.
Yet the courts consistently ruled in favour of the lender.
Appeals were dismissed at multiple levels, including the Court of Appeal and ultimately the Supreme Court, effectively affirming the bank’s right to recover the outstanding debt from the secured assets.
The legal battle suffered another major setback for Tuju earlier this month when High Court Judge Josephine Wayua Mong’are struck out a fresh suit filed by Dari Limited.
In a strongly worded ruling, the judge described the case as an abuse of court process, noting that it sought to re-litigate matters already conclusively determined by earlier judgments.
The court lifted orders that had been blocking the sale of the properties and authorized auctioneers to proceed with recovery efforts.
With that ruling, the lender was effectively given the green light to move ahead with enforcement actions against the Karen assets.
One of the most contentious chapters of the saga involves the reported sale of the Dari restaurant property at auction.
The buyer was identified as Ultra Eureka Limited, a relatively little-known company that allegedly acquired the property for about Sh450 million.
Tuju has challenged the legitimacy of that transaction, arguing that the transfer occurred despite existing court orders restraining dealings with the property.
He has also raised allegations of irregularities within the land registration process and has petitioned Chief Justice Martha Koome, while recording statements with investigators.
The long-running dispute has crystallized into two sharply contrasting narratives.
Tuju portrays the saga as an orchestrated economic takeover. According to his argument, the bank used a development loan as a strategic entry point to acquire assets whose present value could far exceed the original loan facility.
The lender’s position is far simpler.
From the bank’s perspective, the case is a straightforward commercial matter: a borrower secured financing, defaulted on repayment, and courts across jurisdictions upheld the lender’s right to recover the debt using the pledged collateral.
Legal experts say the dispute carries implications far beyond Tuju’s personal fortunes.
The case touches on critical issues including enforcement of commercial loans, recognition of foreign judgments, and the balance between borrower protections and lenders’ rights within Kenya’s financial system.
For banks and investors, the outcome sends a powerful signal about the reliability of Kenya’s credit enforcement framework.
Despite the series of legal setbacks, Tuju has vowed to continue fighting.
He has sought leave to appeal the latest High Court ruling and maintains that serious irregularities occurred in the handling of the case and the sale of the properties.
For now, the tranquil Karen properties that once symbolized a luxury development dream remain at the centre of a high-stakes legal war—one that blends politics, finance, and law into one of Kenya’s most dramatic property disputes.
Whether the saga ultimately ends with the auctioneer’s hammer or another courtroom reprieve remains uncertain. What is clear is that the Tuju-EADB battle has already become one of the most closely watched financial disputes in Kenya’s modern legal history.
