By Andrew Kariuki
The East African Development Bank (EADB) has issued a detailed statement clarifying its long-running loan dispute with former Cabinet Secretary Raphael Tuju, insisting that no repayment has been made despite multiple court rulings in its favour.
In a statement released Tuesday, the regional lender said Tuju, through his company Dari Limited, has not complied with court orders requiring settlement of a debt now amounting to approximately Ksh1.9 billion.
According to EADB, Dari Limited secured a loan of USD 9,197,084 (about KSh1.2 billion) in 2015, using several Nairobi properties as collateral.
The loan was disbursed on July 29, 2015, but fell into default in the second quarter of 2016.
The bank said it issued demand notices in November 2017, which were not honoured, prompting it to pursue legal action in the High Court of Justice in England.
In 2019, the UK court ruled in favour of EADB, ordering payment of USD 15,162,320 (about KSh1.9 billion), inclusive of principal, accrued interest and penalties as stipulated in the loan agreement.
The bank noted that both parties were represented by legal counsel during the proceedings.
The judgment was subsequently recognized and adopted by the High Court in Nairobi on February 13, 2020, and later upheld by the Court of Appeal on April 20, 2023.
“At no point, over the course of this seven-year-long dispute, has the EADB received any credible or verifiable repayment offer from the debtors as have been alleged,” the bank stated.
Following the continued default, EADB exercised its rights under the loan security agreement and auctioned one of the charged properties, the Dari Business Park on Ngong Road, on October 1, 2024.
However, Dari Limited later moved to court challenging the auction and valuation of the property, as well as actions by the bank and associated service providers.
The company obtained interim injunctive orders, but these applied only to properties that had not yet been sold.
In a ruling delivered on March 9, 2026, the High Court in Nairobi struck out Tuju’s amended plaint and lifted earlier interim orders that had restrained the bank from dealing with the remaining secured properties.
The affected properties include Entim Sidai Wellness Sanctuary (LR No. 11320/3) off Tree Lane in Karen, as well as Tamarind Karen and Dari Business Park (LR No. 1055/165) off Ngong Road.
Tuju has, however, maintained that the amount claimed by EADB is significantly lower than the value of the assets already auctioned, particularly the Dari Business Park.
He has also stated that he has always been willing to settle the debt, but has raised concerns over the process leading to the disposal of his properties, alleging that the matter has been politicised.
The former Cabinet Secretary has since written to Chief Justice Martha Koome, questioning the conduct and integrity of certain judicial officers involved in the matter, as well as the circumstances under which auctioneers were allowed to proceed with the sale of his Karen properties.
The dispute continues to draw attention as it moves through Kenya’s legal system, raising broader questions about debt recovery, enforcement of foreign judgments, and the balance between creditor rights and debtor protections.
