The East African Development Bank has issued a detailed position statement responding to claims made by former Foreign Affairs Minister Raphael Tuju, insisting that the matter is being misrepresented in public discourse.
In a statement released on March 16, the bank said it had been compelled to respond due to “great interest expressed in recent days” and what it termed as misleading commentary surrounding the case.
“Ensuing public discourse and commentary, most of it grossly misleading, compels the bank to issue the following statement for context and clarification,” EADB stated.
Loan Agreement and Disbursement
According to the bank, the loan in question was issued to Dari Limited, a company registered in Kenya, under a formal agreement signed in April 2015.
“In 2015, Dari Limited borrowed USD 9,197,084 from the EADB under a loan facility agreement dated 10th April 2015,” the statement reads.
The bank emphasized that the agreement was negotiated and executed with full legal representation on both sides.
EADB further noted that the loan was secured using properties owned by the company’s shareholders and directors in Nairobi.
The bank maintains that the loan was properly disbursed.
“Subsequently, the loan was drawn on the 29th of July 2015 pursuant to the terms of the Facility Agreement, after the charges were duly registered in favour of the Bank,” it added.
Default and Legal Action Leading to Dispute
EADB says the borrower defaulted on the loan shortly after disbursement, prompting the bank to initiate recovery measures.
“As of the second quarter of 2016, the loan was in default, prompting the EADB to issue various demand notices to Dari Limited in November 2017 which were ignored and not honoured,” the bank stated.
Following the default, the lender moved to court in line with the agreed legal framework.
The bank revealed that it obtained a judgment in the United Kingdom in 2019 and say the ruling was later recognized in Kenya.
“The High Court in Nairobi later recognized and confirmed the U.K. judgment on 13th February 2020, and later by the Court of Appeal in Nairobi on 20 April 2023,” the bank said.
EADB also dismissed claims that it had received any genuine repayment proposals.
Auction of Secured Property
The bank confirmed that it proceeded to recover the loan through the sale of charged property after following due process.
“Consequently, under the terms of the Charge, the Bank successfully auctioned the Ngong Road property that had been pledged as security on the 1st of October 2024,” it said.
EADB emphasized that the sale was conducted lawfully and without any court orders preventing it.
Following the auction, Dari Limited filed a new case challenging aspects of the process, including property valuation.
While an interim injunction was initially granted, the bank says the matter has since been resolved in its favor.
“In a substantive ruling delivered on the 9th of March 2026, the High Court in Nairobi struck out the suit and effectively vacated the interim orders,” the statement noted.
EADB strongly rejected the allegations made in public by the borrower, describing them as misleading.
It added that its actions have consistently been guided by legal frameworks and contractual obligations.
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