The East African Development Bank (EADB) has issued a detailed statement clarifying its position in the ongoing loan dispute involving former Cabinet Secretary Raphael Tuju, asserting that no repayment has been made despite multiple court rulings.
Loan Default and Legal Proceedings
According to EADB, Tuju, through his company Dari Limited, secured a loan of USD 9.19 million (approximately Ksh.1.2 billion) in 2015. The loan, drawn on July 29 of that year, was backed by several properties in Nairobi pledged as collateral.
However, the facility fell into default in the second quarter of 2016, prompting the bank to issue demand notices in November 2017, which it says were not honored.
The dispute escalated to the High Court of Justice in England and Wales, which in 2019 ruled that Dari Limited owed USD 15.16 million (about Ksh.1.9 billion), inclusive of interest and penalties accrued under the loan agreement.
The ruling was later recognized and adopted locally by the High Court of Kenya in February 2020 and upheld by the Court of Appeal of Kenya in April 2023.
No Repayment, Says Bank
In its statement, EADB maintained that throughout the protracted legal battle, it has not received any credible repayment proposal from Tuju or Dari Limited.
“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,” the bank stated.
Property Auction and Ongoing Disputes
Following the court decisions, the bank proceeded to enforce its security and auctioned a key property on Ngong Road on October 1, 2024.
Subsequently, Dari Limited filed a fresh suit challenging aspects of the auction process, including the valuation of the property. The company obtained interim court orders affecting unsold assets.
However, on March 9, 2026, the High Court of Kenya struck out Tuju’s amended plaint and lifted the interim injunctions, effectively allowing the bank and associated parties to proceed with actions concerning the remaining properties.
The contested assets include Entim Sidai Wellness Sanctuary and other prime properties in Nairobi’s Karen area.
Tuju’s Response
Tuju has consistently disputed the valuation of the auctioned properties, arguing that the outstanding debt is significantly lower than the value of assets already sold. He maintains that he has been willing to settle the debt but has raised concerns about the process, alleging political interference.
The former Cabinet Secretary has also formally written to Martha Koome, the Chief Justice, questioning the conduct and integrity of certain judicial officers involved in the case.
Broader Implications
The dispute highlights the complexities of cross-border financial litigation and enforcement of commercial loans, particularly where high-value assets and multiple jurisdictions are involved. It also underscores the role of regional financial institutions like EADB in enforcing contractual obligations amid prolonged legal challenges.
