Court halts auction of Tuju’s Karen properties over Sh4.5 billion loan dispute
The legal dispute centres on a Sh4.5 billion loan obtained in 2015 by Dari Ltd — a company linked to Tuju — from the East African Development Bank (EADB).
The High Court has issued temporary orders barring Garam Investments Auctioneers from selling high-end properties in Karen belonging to the former Cabinet Minister Raphael Tuju, pending the determination of a suit involving a contested multi-billion shilling loan deal.
The legal dispute centres on a Sh4.5 billion loan obtained in 2015 by Dari Ltd — a company linked to Tuju — from the East African Development Bank (EADB). The loan was meant to finance the development of a luxury hospitality project in Karen.
More To Read
- Kenya's fake title deeds crisis threatens foreign investment, says US report
- EACC probes University of Nairobi over alleged land mismanagement, fraud
- Police headquarters operated without title deed for over 60 years, MPs told
- Ex-PS Dave Mwangi charged with fraudulent acquisition of Sh350 million land
- Ministry of Lands seeks Sh35 billion to digitise records countrywide
- 10 suspects charged with Sh1 billion land fraud in Nairobi
Although several courts, including the High Court, Court of Appeal and the Supreme Court, have upheld the debt's repayment, Tuju has consistently contested the valuation and sale process of the properties.
One of the prime assets under dispute — part of the Dari Business Park — was allegedly auctioned in early 2024 and transferred to Ultra Eureka Limited, which now asserts ownership of the property.
Tuju's legal team disputes the legality of the transaction, arguing that the sale took place despite an active injunction barring any transfer or interference.
Through his lawyer, Paul Nyamodi, Tuju had initially written to Ultra Eureka Limited demanding that the company stop interfering with the property and its tenants. In the letter, Nyamodi accused Ultra Eureka of breaching a court injunction by attempting to take over rent collection.
He referenced a letter dated April 30 in which Ultra Eureka informed the tenants that it now owned the property and directed them to begin paying rent to the firm, or face legal consequences.
Nyamodi emphasised that the matter is actively before the courts under case number HCCOMM No. E636 of 2024, and an injunction remains in place barring any transactions or changes in possession.
"Our client obtained an injunction barring dealings with the property. Through your letter, your client now seeks to compound the contempt by interfering with our client's peaceful possession of the property and harassing his tenants," Nyamodi argued.
"As you are well aware, the property is the subject of litigation in various suits, including HCCOMM No. E636 of 2024. Our client in the said matter obtained an injunction barring dealings with the property.
In the ruling delivered on Wednesday, May 7, Justice Josephine Mong'are directed that the status quo be maintained until June 24, 2025, when the matter is scheduled for hearing.
She also stopped the forced sale of the Dari Business Park and the Entim Sidai Wellness Sanctuary, which had reportedly been valued and marked for auction at prices Tuju's camp says were well below market rates.
Top Stories Today
