Court order protects Tuju’s prime properties as new owner emerges

Former Cabinet Secretary Raphael Tuju at Entim Sidai Sanctuary in Karen, Nairobi on May 2, 2024.

Photo credit: Evans Habil

The High Court has extended an order barring a regional lender and others from interfering with former cabinet secretary Raphael Tuju’s property in Karen.

Justice Josephine Mong’are said on Wednesday that the order will remain in force until June 24, when the case will be heard.

As the court extended the order, Mr Tuju’s lawyers have written to Ultra Eureka Limited, the company that claims to have bought one of the properties at auction last year, to stop interfering with his tenants.

Ultra Eureka says it purchased the property for Sh450 million last October and the transfer was made on February 18 this year despite a court order stopping the move.

The former CS has been at loggerheads with the East African Development Bank (EABD) over a disputed Sh4.5 billion debt arising from a loan taken by his firm, Dari Ltd, in 2015.

Mr Tuju’s lawyer Paul Nyamodi said in the letter that Ultra Eureka should cease and desist from harassing, provoking and intimidating or disrupting the tenants’ quiet possession and enjoyment of the property.

“As you are well aware, the property is the subject of litigation in various suits including HCCOMM No. E636 of 2024. Our client in the said matter obtained an injunction barring dealings with the property,” Mr Nyamodi wrote to Ultra Eureka.

Title transfer

The letter showed that Ultra Eureka Limited wrote to Dari’s tenants on April 30, 2025 saying it now owned the property and instructed the tenants to pay them rent or face legal action.

But Mr Nyamodi pointed out that a court order had been served on the Land Registry to stop any registration against the title to the property, but this was disregarded and the property was transferred.

“Through your letter, your client now seeks to compound the contempt by interfering with our client’s peaceful possession of the property and harassing his tenants,” Mr Nyamodi said.

Mr Tuju said his lawyers had on December 2 written to Chief Land Registrar David Nyambaso Nyandoro instructing him to register the court order and block any dealings or transfers of the property.

“In addition, we request that the deed file thereafter be kept in your custody or that of your deputy to prevent any authorised dealings, pending resolution of the suits in court,” the letter filed in court stated.

And as the only authority empowered to register transfers, Mr Tuju said the official was obligated to ensure compliance with the court order by registering the title and keeping the deed file in safe custody.

He said the transfer of the property took place on February 18, 2025, in contravention of the court order and a letter from deputy chief lands registrar advising against any dealings with the land.

The dispute

In the dispute, Tuju’s firms Dari and SAM Company Ltd entered into a facility agreement with the lender in 2015 for a loan of $9.3 million to expand his business.

The loan was secured by various forms of collaterals, including an indemnity and guarantee agreement dated April 10, 2015.

Tuju’s two properties, Entim Sidai, and Tamarind Karen and Dari Business Park, the latter two located on the same land, were charged as security for the loan.

The former CS accused the bank of failing to disburse the full amount, causing cash flow difficulties for the principal debtor.

EADB then instructed Garam Investments Auctioneers to auction the properties to recover the debt.

But Mr Tuju went to court, arguing that he had never been served with a statutory notice under Section 90 of the Land Act.

He further disputed the amount the lender wanted to recover $35,051,622 (about Sh4.5 billion), saying it exceeded the principal amount on account of interest.

Mr Tuju further submitted that the auctioneer issued the notifications advertising for the sale of the property unlawfully and that there were several cases pending determination in various courts.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.