Former Cabinet Secretary Raphael Tuju. IMAGE/FILE

How a Ksh943M Loan Landed Tuju in a Long Court War

The legal troubles facing former Cabinet Secretary Raphael Tuju arise from a prolonged nine-year court dispute over a prime property in Karen, a case that began in the United Kingdom before continuing through several levels of Kenya’s judicial system, with only the Supreme Court of Kenya yet to hear it.

The matter traces back to 2015 when the East African Development Bank (EADB) issued a loan of Ksh.943.9 million to Tuju to support the purchase and development of commercial units in Nairobi. The loan agreement provided a 24-month grace period, which expired in 2017.

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According to court documents, the bank filed a case in November 2018 at the High Court of Justice of England and Wales, claiming that Dari Limited—a company linked to Tuju—had failed to repay the loan as agreed. Tuju and the company responded to the claim with a formal defence.

In June 2019, the court in London ruled in favour of the bank. The EADB then moved to Kenya’s High Court of Kenya seeking recognition and enforcement of the UK judgment under the Foreign Judgments Reciprocal Enforcement Act.

In January 2020, Justice Wilfrida Okwany approved the bank’s request, allowing the London judgment to be recognised and enforced locally. An attempt by Dari Limited to overturn that decision was unsuccessful.

Three years later, in April 2023, the company filed an appeal claiming the London ruling had been obtained fraudulently. However, judges Kathurima M’Inoti, Kibaya Laibuta and Gachoka Paul Mwaniki of the Court of Appeal of Kenya dismissed the appeal, stating it lacked merit and appeared to rely on technical arguments to avoid contractual obligations.

In September 2024, Dari Limited—then under receivership—together with Tuju sought a temporary injunction from the Commercial Division of the High Court to stop the bank and Garam Investment Auctioneers from selling several properties. These included the Entim Sidai Wellness Sanctuary and Dari Business Park in Karen.

Justice Njoki Mwangi ruled that property valuations conducted by Knight Frank could be relied upon and found that the balance of convenience favoured the bank, allowing it to proceed with recovering the loan.

In October 2024, Tuju, Dari Limited and members of his family—Mano Tuju, Alma Tuju and YMA Tuju—filed another case seeking to stop the planned auction of the Karen properties. After nearly two years of proceedings, Justice Wambua Mongare dismissed the case, clearing the way for the bank and auctioneers to proceed.

Following these developments, Tuju wrote to Martha Koome, the Chief Justice of Kenya, raising concerns about the conduct and integrity of some judicial officers and questioning the process that allowed auctioneers to move ahead with the sale of his Karen properties.

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