The row pitting former Cabinet Secretary Raphael Tuju against the East African Development Bank (EADB) has lingered in court corridors for nearly seven years, evolving from a commercial dispute into a near-political circus, with some politicians alleging malicious schemes against the former minister.
Business Daily pieces together a chronology of how the saga has unfolded over the years.
Mr Tuju’s Dari Ltd and SAM Company enter into a loan agreement with EADB, with the lender agreeing to disburse $9.3 million. Mr Tuju is to acquire a 20-acre parcel of land in Karen and develop a mixed-use luxury project.
The loan is secured by Mr Tuju’s Entim Sidai (the property being acquired with the loan), Tamarind Karen, and Dari Business Park, alongside personal guarantees by Mr Tuju and his children – Mano, Alma and Yma.
The loan is disbursed on July 31, 2015.
The first tranche of Sh932.7 million is used to purchase a 94-year-old bungalow built by Scottish missionary Albert Patterson, which operates as a high-end restaurant.
The second tranche, about Sh270 million, is intended for the construction of housing units to be sold to service the loan.
Mr Tuju is granted a 24-month grace period, with repayments set to begin in 2017.
The court battle - November 2017
EADB begins issuing demand letters to Mr Tuju and his companies on November 27, 2017, seeking repayment.
The lender accuses Mr Tuju of failing to pay interest on the loan, arguing that the facility was “substantially in default” by 2016.
Mr Tuju maintains that the full amount was not disbursed, claiming this caused cash flow challenges and stalled the project.
He argues that EADB only disbursed Sh932.7 million for the first tranche instead of the agreed Sh943.9 million, and reneged on the plan to provide Sh294 million for the construction of luxury homes.
He adds that the bank paid Sh932.7 million directly to the seller of the bungalow and later demanded additional security for the construction of the Sh100 million villas.
One of the Sh100 million Entim Sidai luxury homes the Tujus were building in Karen. PHOTO | SALATON NJAU | NMG
“Having failed to disburse the balance of $102,916 (then Sh10.4 million) and a further Sh294 million, the first defendant inevitably experienced cash flow challenges,” said Mr Tuju.
Mr Tuju accuses the lender of funding the land acquisition but withholding funds meant for development, whose proceeds would have serviced the loan.
EADB files arbitration proceedings against the borrowers and their guarantors – Mr Tuju and his children.
On June 19, 2019, High Court judge Daniel Toledano in the UK rules in favour of EADB and awards the lender $15,162,320.95.
EADB then files an application in the High Court in Nairobi to have the UK judgment recognised in Kenya.
Dari Ltd and Mr Tuju oppose the application, alleging bias, arguing that Michael Sullivan, who represented the bank, and judge Toledano shared chambers. The High Court in Nairobi rejects the argument.
The UK decision is adopted as a High Court judgment in Kenya on January 7, 2020, under the Foreign Judgments (Reciprocal Enforcement) Act.
The former Cabinet Secretary moves to the Court of Appeal, arguing that, beyond bias, EADB frustrated efforts to make the property viable for other lenders, including KCB Group and private equity investors.
In rejecting the appeal, the judges state that both parties voluntarily subjected themselves to English law, and the judgment cannot be set aside merely because it may be erroneous.
Mr Tuju then moves to the Supreme Court and secures a temporary suspension of the seizure pending the determination of his application.
However, before the case is heard, he seeks to introduce additional evidence. The application is rejected, after which the former CS accuses the apex court judges of bias. The judges subsequently recuse themselves.
Back to the High Court - February 2020
The bank initiates various insolvency proceedings against Mr Tuju and his children, issues statutory demand notices, and appoints receiver managers to the charged properties.
In April 2023, EADB appoints Muniu Thoithi and George Weru of PricewaterhouseCoopers (PwC) as receiver managers, but they are denied access to the properties. The bank then files contempt proceedings against Mr Tuju and his children.
The auction - October 2024
Dari Coffee and Garden Restaurant is auctioned on October 1, 2024, for Sh450 million, but Mr Tuju contests the sale to Ultra Eureka Ltd, a company owned by Stabex International Ltd co-owner Jackson Kiplimo Chebett.
The planned sale of Entim Sidai Wellness Sanctuary, Tamarind Karen and Dari Business Park is, however, halted by the court after Mr Tuju challenges the valuation conducted by Knight Frank Valuers, which had been appointed by EADB.
EADB had instructed Garam Investments Auctioneers to sell the properties to recover the debt.
Former Cabinet Secretary Raphael Tuju addressing journalists at Entim Sidai Sanctuary in Karen, Nairobi on May 2, 2024.
Photo credit: File | Nation Media Group
Mr Tuju moves to court, arguing that he was not served with a statutory notice under Section 90 of the Land Act.
He also invokes the in duplum rule, arguing that EADB seeks to recover $35,051,622 (about Sh4.5 billion), which exceeds the principal amount owed.
While the matter is pending before the Supreme Court, Mr Tuju returns to the High Court, stating that he is ready to repay the debt.
He obtains orders maintaining the status quo, including suspension of insolvency proceedings and any further auction of the properties, pending the determination of the application.
The High Court states that while a lender is entitled to recover its outlay or realise its security in the event of default, a borrower must be heard when offering to repay the debt.
Dari Ltd states that it has secured alternative funding from other lenders willing to settle the loan under court supervision.
EADB opposes the application, stating that the debt stood at $16,550,608 (Sh2.14 billion) as of December 20, 2019.
The bank adds that it is not interested in mediation, noting that the matter has been in court for four years and that the Tujus have not made any repayments. It states that the last payment of $10,000 (Sh1.2 million) was made in August 2016.
Mr Tuju accuses Knight Frank Valuers of conducting what he terms desktop valuations and web-based enquiries. He argues that the report does not reflect the true value of the properties and should not be used to justify a forced sale.
Valuation reports allegedly conducted in July 2026 place Tamarind Karen and Dari Business Park at Sh590 million (market value) and Sh442.5 million (forced sale value).
The reports also value Entim Sidai at Sh1.395 billion (market value) and Sh1.046 billion (forced sale value).
A view of Entim Sidai Wellness Sanctuary in Karen, Nairobi on March 22, 2026.
Photo credit: Dennis Onsongo | Nation Media Group
The lender seeks to sell the properties to recover a debt of $35,057,622 (about Sh4.5 billion).
In July 2024, Mr Tuju fails in his bid to reopen the long-running legal battle, with the court stating that the issues raised had already been determined in previous rulings.
He had asked the High Court to review its January 2020 decision recognising the EADB judgment obtained in London. The London ruling required him and his companies to repay the 2015 loan, which has since grown to more than Sh4.5 billion.
He argues that new and important evidence has emerged, warranting a review of the judgment that paved the way for the auction of his properties.
“The matter has been finally decided by a court of competent jurisdiction. This court will not permit a collateral attack on a final and valid foreign judgment already recognised by this court and the appellate court,” the High Court rules.
Mr Tuju claims that the new evidence arises from the cross-examination of a key bank witness, David Odongo, who allegedly confirms that the 2015 loan was structured in two phases.
He further states that Mr Odongo retracts key parts of earlier sworn affidavits used to secure the UK judgment and its recognition in Kenya.
According to Mr Tuju, the witness also admits that the loan agreement covered both land acquisition and construction of villas, but that the facility agreement only reflected the first phase.
Contempt - March 2026
Mr Tuju and his children are fined Sh100,000 each for contempt of court for deliberately disobeying orders issued on March 2 and March 13, 2020, requiring them to grant receiver managers access to the property.
Days later, the High Court lifts an order blocking the transfer of the property to Ultra Eureka Ltd.
This follows the dismissal of a suit filed by Dari Limited and Mr Tuju, which alleged that the auction was unlawful as it violated interim court orders and occurred while they were contesting the legality and enforcement of the loan facility agreement.
Former Cabinet Secretary Raphael Tuju peeps into his property after heavily armed security officers sealed off the Dari Business Park premises in Karen along Ngong Road in Nairobi on March 14, 2026.
Photo credit: Wilfred Nyangaresi | Nation Media Group
