Former Cabinet Secretary Raphael Tuju is once again battling to keep one of his most valuable properties after the High Court allowed the sale of part of his Karen estate to proceed when he failed to meet a key condition set by the court.
The ruling marks another chapter in a legal dispute that has stretched for years, pitting Tuju and his company, Dari Limited, against the East African Development Bank (EADB) over a multi-billion-shilling loan.
Earlier this year, the High Court granted Tuju temporary protection from the sale of the Entim Sidai Wellness Sanctuary, one of the properties at the centre of the dispute. But that relief came with a condition: he was required to deposit KSh50 million into a joint interest-earning account within 30 days as security while pursuing an appeal.
According to court documents, Tuju did not make the payment within the deadline. As a result, the stay order automatically expired, clearing the way for enforcement proceedings against the property.
The latest development means the 20-acre Karen estate can now be offered for sale unless another court intervenes.
The dispute stems from a loan advanced by the East African Development Bank to Dari Limited in 2015 to finance a commercial property project in Karen. The bank says the loan fell into default in 2016 and that repeated demands for repayment went unanswered, prompting legal action and efforts to recover the debt through the charged properties.
Tuju has consistently challenged both the amount claimed and the process used to recover the debt. He has argued that the value of the properties far exceeds the outstanding loan and has questioned the manner in which the enforcement has been carried out.
“The plaintiff shall, within 30 days, deposit security in the sum of Sh50 million… failing which the stay order shall automatically lapse,” Justice Moses Ado ruled when granting the temporary reprieve.
The EADB, however, maintains that it has acted within the law and in line with court decisions. The lender says Dari Limited defaulted on its repayment obligations and that it has simply exercised its legal rights to recover public funds after years of litigation.
The battle over Tuju’s Karen properties has become one of Kenya’s longest-running commercial disputes, involving multiple court applications, appeals and injunctions. Previous rulings have alternately paused and revived auction plans as both sides continue to contest the matter.
With the latest court condition unmet, attention now shifts to whether Tuju will secure fresh legal relief or whether the planned sale of the Karen estate will finally proceed.
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