Judiciary warns against public debate on Dari Ltd, East African Development Bank legal case

Judiciary warns against public debate on Dari Ltd, East African Development Bank legal case

Tuju has publicly aligned himself with Dari Limited in its legal battle against the East African Development Bank (EADB), arguing that recent court rulings have unfairly favoured financial institutions.

The Judiciary has cautioned against public discussions on the ongoing legal dispute between Dari Limited and the East African Development Bank (EADB).

It has urged all parties involved to allow the courts to handle the matter without external interference.

In a statement released on Thursday, Judiciary Spokesman Paul Ndemo emphasized that the case is still before competent courts and should not be debated in the media or on social platforms.

“Under the sub judice rule, which upholds the rule of law and ensures fair administration of justice, these matters should be left for judicial determination,” Ndemo stated.

The Judiciary also expressed concern over recent public remarks made by former Cabinet Secretary Raphael Tuju during a radio interview, calling them misleading and reiterating the need for responsible reporting.

Tuju’s open letter

The JSC’s warning follows an open letter from Raphael Tuju to Chief Justice Martha Koome, in which he accused the Supreme Court of bias, judicial misconduct, and setting dangerous legal precedents.

Tuju has publicly aligned himself with Dari Limited in its legal battle against the East African Development Bank (EADB), arguing that recent court rulings have unfairly favoured financial institutions.

He claims these decisions have enabled banks, including EADB, to auction properties without following the due legal process, raising concerns over judicial integrity.

Tuju alleged that five Supreme Court judges have consistently ruled in favor of wealthy financial institutions, disadvantaging individuals seeking justice.

He further claimed that some judges have ruled in favor of banks even when the banks did not explicitly request such judgments.

In his letter, Tuju also accuses certain judges of personal misconduct, alleging that four out of seven Supreme Court justices have been seen publicly intoxicated.

“The law cannot be the foundation of morality; it is the other way around, your Honour. Morality is the foundation of a good law,” he wrote. He went on to state that he could provide video evidence of the alleged misconduct circulating on social media.

In response, EADB has strongly denied the allegations, affirming that its lending practices adhere to strict legal and governance principles. The JSC has also reiterated its position that all parties must respect the judicial process and refrain from making public statements that could interfere with the administration of justice.

In a statement, the bank said it “takes great exception to comments and allegations” made during the interview, which it claimed misrepresented its lending operations.

EADB reaffirmed that all its activities are conducted in accordance with the law and adhere to strict governance principles across its four member states.

“All loan facilities advanced by the bank undergo rigorous scrutiny without favoritism toward individuals or institutions based on rank or profile,” the bank stated.

While refraining from commenting on specific claims due to ongoing legal proceedings, EADB expressed confidence that the court rulings in its favor in both the UK and Kenya demonstrate the legitimacy of its actions.

The bank also urged journalists to uphold the principles of objective reporting, stating, “The media must countercheck claims against available facts, which we are ready to provide when requested.

Where this whole dispute started

The legal battle has been ongoing in various courts. It began in the High Court of Justice, Business and Property Courts of England and Wales, which ruled in favor of EADB on June 19, 2019. The court ordered Dari Limited and its guarantors to settle outstanding claims owed to the bank.

Dari Limited challenged this decision but faced setbacks. On February 13, 2020, the High Court dismissed its attempt to overturn the ruling. The company then appealed to the Court of Appeal, which upheld the High Court’s decision on April 20, 2023.

Determined to fight on, Dari Limited escalated the matter to the Supreme Court of Kenya. However, before the case could be heard, the company filed a complaint with the Judicial Service Commission (JSC), alleging bias among Supreme Court judges. The allegations led to the judges recusing themselves, effectively leaving the Court of Appeal’s decision in force.

Despite these rulings, Dari Limited continued to seek legal avenues to prevent EADB from enforcing the judgment. In September 2024, the company sought a High Court order to stop the auction of its disputed properties. However, the court dismissed the application on September 30, 2024.

Separately, in July 2021, Dari Limited filed a case at the East African Court of Justice (EACJ), arguing that EADB’s actions violated the East African Community Treaty.

That case remains pending before the regional court.

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