Court Opens Door to Auction of Tuju’s Multi-Billion Properties in Karen After Decade-Long Debt Fight

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. The ruling marks a turning point in the long debt saga, leaving the auction of Tuju’s multi-billion properties in Karen closer than ever as lenders intensify recovery efforts. 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 th…