The auction of Tuju’s multi-billion-shilling properties in Nairobi’s upscale Karen suburb is now a step closer after the High Court struck out a last-minute legal attempt to block their sale.
Former Cabinet Secretary and ex-Rarieda MP Raphael Tuju faces the possible loss of two prime commercial properties following a long-running debt dispute linked to a 2015 loan facility.
In a decisive ruling, Justice Josephine Wayua Mongare declared the matter already settled by multiple courts. The decision clears the path for lenders to move ahead with recovery, ending years of courtroom battles over the multi-million-dollar debt.
Auction of Tuju’s Multi-Billion Properties Moves Closer After High Court Ruling
A long-running legal battle over a multi-million dollar loan has finally reached a decisive moment after the High Court in Nairobi cleared the way for the auction of Tuju’s multi-billion shilling properties in Karen.
The ruling exposes the depth of a financial dispute that has stretched across several courts in Kenya and abroad. Former Cabinet Secretary and former Rarieda MP Raphael Tuju now faces the imminent loss of two prime properties after the court struck out a fresh attempt to block their sale.
Justice Josephine Wayua Mongare ruled that the dispute had already been determined in earlier cases, effectively closing the door on further legal challenges and allowing lenders and auctioneers to proceed with recovery measures.
Court Rules Debt Dispute Already Settled
The High Court decision delivered on March 9 dealt a major blow to Tuju and Dari Limited, the company that owns the disputed properties. The court dismissed an amended suit filed by Dari Limited and Tuju that sought to block the planned auction of two valuable properties in Karen.
These properties include L.R. No. 11320/3, home to the Entim Sidai Wellness Sanctuary on Tree Lane, and L.R. No. 1055/165, which hosts Tamarind Karen and Dari Business Park along Ngong Road.
The lawsuit had attempted to stop lenders and auctioneers from selling the properties as part of efforts to recover a massive loan that had allegedly gone into default.
Justice Mongare ruled that the case could not proceed because the issues raised had already been determined in previous court proceedings. She concluded that the matter was res judicata, a legal principle that prevents courts from hearing cases that have already been decided.
According to the judge, Dari Limited was essentially asking the court to revisit an injunction request that had already been rejected in earlier litigation. The ruling immediately revived the auction of Tuju’s multi-billion properties, putting the high-value Karen assets squarely back on the auction path.
The 2015 Loan That Triggered the Property Dispute
The roots of the dispute trace back to April 2015, when Tuju’s company secured a loan facility from the East African Development Bank. Court documents show that the loan later went into default, prompting the lender to pursue legal action to recover the funds.
The case quickly escalated beyond Kenya’s borders. In June 2019, the High Court of Justice ordered the borrowers to pay $15,162,320.95 after ruling in favour of the lender.
The judgment marked a major turning point because it gave the bank legal backing to pursue the debt through enforcement actions. The ruling did not end the legal fight. Instead, it triggered a series of court battles in Kenya as Tuju and his company tried to stop the enforcement process.
Multiple Courts Decline to Stop the Auction
The foreign judgment was formally recognized by the High Court of Kenya in 2020, allowing the lender to enforce it locally. That recognition effectively meant the lender could move against the assets used as security for the loan.
Tuju and Dari Limited challenged the enforcement through various legal avenues, but the courts repeatedly ruled against them.
In 2023, the Court of Appeal of Kenya upheld the decision to enforce the judgment. The legal fight reached the country’s highest court, but the Supreme Court of Kenya declined to suspend the enforcement orders.
These successive rulings gradually tightened the legal noose around the Karen properties. Each judgment strengthened the lender’s position and brought the auction of Tuju’s multi-billion properties closer to reality.
Fresh Court Challenge Fails As Judge Finds Plaintiffs Attempting to Reopen Old Case
Despite earlier losses in court, Dari Limited returned to the High Court in October 2024 seeking fresh orders to stop the auction. The company asked the court to issue interim orders preventing the sale or transfer of the Karen properties.
The court initially granted temporary injunctions while the application awaited a full hearing. However, the lender and auctioneers immediately pushed back. They filed applications asking the court to strike out the case entirely.
Their argument was simple and forceful. They said the High Court lacked jurisdiction to reopen a matter that had already been conclusively determined in several earlier rulings.
Justice Mongare agreed with that position. After reviewing the court record and earlier judgments, she ruled that the plaintiffs were effectively trying to re-litigate issues that had already been decided.
The judge stated that the court could not re-hear an injunction application that had already been denied in a previous ruling. Her decision wiped out the latest legal barrier and revived the auction process.
Multi-Billion Karen Assets Now Face Auction
The ruling places Tuju’s prized Karen properties at immediate risk of sale. Both properties sit in one of Nairobi’s most exclusive neighbourhoods and host high-end commercial ventures including wellness facilities, restaurants, and office space.
Their combined value runs into billions of shillings, making the planned sale one of the most significant property recovery cases in recent years.
For lenders, the judgment clears the final legal hurdles in their effort to recover the outstanding debt. For Tuju and his company, it represents a dramatic setback after nearly a decade of legal battles across multiple jurisdictions.
The auction of Tuju’s multi-billion-dollar properties now appears inevitable unless a new legal strategy emerges. After years of litigation stretching from London to Nairobi’s highest courts, the dispute has reached a point where the law has spoken repeatedly and decisively. And this time, the auctioneers are finally free to act.
