Former Cabinet Secretary Raphael Tuju is at the center of a nine-year legal battle involving a multi-million shilling loan that spans courts in London and Nairobi, culminating in the threat of auctioning his prime properties in Karen.
The Loan That Sparked a Decade of Disputes
The saga began in 2015, when the East African Development Bank granted Tuju Ksh.943.9 million to acquire and develop commercial units under Dari Limited, a company registered in his name. The agreement included a 24-month grace period which expired in 2017.
When repayments allegedly stalled, EADB filed a case against Dari Limited in the High Court of Justice Business and Property Courts of England and Wales in November 2018. By June 2019, the London court ruled in favor of EADB. Subsequently, the bank sought enforcement of the judgment in Nairobi under the Foreign Judgments Reciprocal Enforcement Act.
In January 2020, Lady Justice Wilfred Okwany recognized and registered the London judgment in Nairobi. Dari Limited unsuccessfully applied to set aside the recognition, claiming the London ruling was fraudulent.
Appeals and Continued Litigation
In April 2023, Dari Limited filed an appeal arguing the London judgment was obtained fraudulently. However, Justices Kathurima M’Inoti, Kibaya Laibuta, and Gachoka Paul Mwaniki of the Court of Appeal dismissed the appeal, observing that the company was relying on technicalities to avoid obligations under the loan agreement.
In September 2024, Tuju and Dari Limited sought a temporary injunction in the High Court (Commercial Division) to block EADB and Garam Investment Auctioneers from selling properties including:
- Entim Sidai Wellness Sanctuary, Tree Lane, Karen (LR No.11320/3)
- Tamarind Karen and Dari Business Park, Ngong, Karen (LR No. 1055/165)
Lady Justice Njoki Mwangi allowed the bank to proceed with recovering the loan, affirming property valuations conducted by Knight Frank, a London-based real estate consultancy.
A subsequent suit in October 2024, filed by Tuju, his children Mano Tuju, Alma Tuju, and YMA Tuju, sought to block the auction of the Karen properties. After nearly two years, Lady Justice Wambua Mongare dismissed the suit, allowing EADB and Garam Auctioneers to proceed.
Tuju Questions Judicial Integrity
Frustrated by the protracted legal battle and auction proceedings, Tuju has written to Chief Justice Martha Koome, raising concerns over the conduct of some judicial officers and questioning the processes that allowed the properties to be auctioned.
The high-profile case underscores the complexities of cross-border enforcement of judgments and the challenges Kenyan borrowers face when dealing with multi-million shilling loans, particularly in disputes spanning foreign and local courts.
