The legal defenses that for years shielded former Cabinet Secretary Raphael Tuju’s multi-billion-shilling property portfolio from the auctioneer’s hammer have finally collapsed. In a decisive ruling delivered on March 9, 2026, the High Court in Nairobi struck out an application by Dari Limited, a company associated with the former politician, effectively clearing the path for the East African Development Bank (EADB) to proceed with the recovery of a massive debt.

This ruling marks a definitive turning point in one of Kenya’s most protracted and high-profile commercial disputes. For the better part of a decade, the conflict over a 2015 loan facility has wound its way through the corridors of the Kenyan judiciary, the UK commercial courts, and the Supreme Court of Kenya. Now, with the High Court declaring the latest challenge an abuse of process, the immediate seizure and sale of prime properties in Karen—including the Entim Sidai Wellness Sanctuary and the Tamarind Karen business complex—appear imminent.

A Decade of Litigation Exhausted

The core of the dispute dates back to April 2015, when Dari Limited secured a loan facility from the East African Development Bank intended to finance property development in Nairobi’s affluent Karen suburb. The project, which was envisioned as a hub for luxury hospitality and residential space, eventually faltered after the loan went into default. Following the breakdown in repayment, the bank initiated recovery proceedings, which escalated into a complex international legal battle.

In 2019, the High Court of Justice in England and Wales issued a summary judgment ordering the borrowers to repay more than $15 million (approximately KES 2.2 billion at current exchange rates, though historical figures have fluctuated depending on accumulated interest). That judgment was subsequently recognized and registered by the Kenyan High Court in 2020. Despite this, Tuju and his entities filed a series of legal challenges aimed at blocking enforcement, arguing issues ranging from the validity of the loan agreement to alleged misrepresentations by the lender.

Justice Josephine Wayua Mongare’s ruling this week cut through these arguments with surgical precision. The court noted that the plaintiffs were essentially attempting to relitigate issues that had already been adjudicated by multiple tiers of the judiciary, including the Supreme Court of Kenya. By declaring the matter res judicata—a legal doctrine that prevents the same parties from litigating a matter that has already been judged by a competent court—the judge effectively barred any further attempts to use the court system to stall the recovery process.

The Stakes of the Impending Auction

The properties currently under the threat of auction represent significant real estate assets in the Karen area. The specific assets targeted for recovery include:

• Entim Sidai Wellness Sanctuary (L.R. No. 11320/3): A sprawling property on Tree Lane that has served as a boutique retreat.
• Tamarind Karen and Dari Business Park (L.R. No. 1055/165): A prime commercial site along Ngong Road.

These assets were used as collateral for the 2015 facility. While the original loan was approximately $9.3 million, the total liability has ballooned over the years due to compounded interest, legal costs, and the extended period of the dispute. Estimates provided by the lender during various court filings suggest that the total recovery amount now exceeds KES 4.5 billion, reflecting the aggressive accumulation of debt that the borrowers have been unable to stem.

The Cost of Procedural Hurdles

The judiciary’s patience has clearly worn thin regarding the tactical use of injunctions. In her ruling, Justice Mongare did not merely dismiss the application she characterized the ongoing attempts to stop the auction as a vexatious use of the court’s time. The court observed that the plaintiffs were seeking to re-hear injunctions that had already been denied and to re-litigate the enforceability of securities that were already subject to final orders from higher courts.

This frustration is mirrored in broader commercial circles in Nairobi, where analysts note that the case has become a textbook example of the risks associated with highly leveraged real estate projects. The legal saga has also taken a personal toll on those involved, with Tuju and his family members—who acted as guarantors for the facility—finding themselves entangled in contempt of court proceedings for failing to grant receiver-managers access to the properties in question. Earlier this month, courts even leveled fines against members of the family for disobeying previous orders, highlighting the severity of the standoff.

A Cautionary Tale for Commercial Lending

The resolution of this case serves as a powerful reminder to the Kenyan market regarding the efficacy of international commercial agreements. The fact that an English court’s judgment could eventually be enforced in Nairobi speaks to the increasing integration of global legal standards in Kenyan commercial disputes. It demonstrates that local assets can be at risk even when debts originate from foreign-based lenders or under foreign law, provided the courts determine the underlying obligations are legitimate and binding.

For the East African Development Bank, the path is now clear. With the lifting of the interim orders that had provided temporary shelter to the properties, the bank and its appointed agents—including Garam Investment Auctioneers and Knight Frank—are theoretically free to proceed with the auction. While the possibility of an appeal exists, the precedent set by the Supreme Court’s prior dismissals of similar arguments suggests that the room for further maneuvering is virtually non-existent.

As the dust settles on this legal battle, the focus will now shift to the auction floor. For Raphael Tuju, a man who once occupied the upper echelons of the Kenyan Cabinet, the outcome is a stark, public conclusion to a long-running financial crisis. It is a moment that underscores the unforgiving nature of debt in the world of high-stakes capital, where even the most prominent figures are ultimately bound by the terms of the contracts they sign.