A second prime property belonging to former Jubilee Party Secretary General Raphael Tuju is set for auction as the East African Development Bank intensifies recovery efforts over a debt that has grown to about Sh4.5 billion.
Garam Investments Auctioneers has announced that Entim Sidai Wellness Sanctuary in Karen will be sold on August 25, several months after another property linked to Tuju was transferred following default on the same loan.
The auction notice describes Entim Sidai as a roughly 20-acre property developed with a well maintained colonial residence containing nine ensuite bedrooms, alongside wellness, hospitality and conference facilities.
The property includes a clinic, massage parlour, restaurant, conference spaces and resort style amenities built around an old Victorian bungalow that Tuju had planned to develop into retirement homes.
The planned sale follows a High Court ruling delivered on May 21, when the court temporarily stopped the auction on condition that Tuju deposited Sh50 million within thirty days.
The court further directed him to file an appeal challenging the intended sale within sixty days, with the temporary protection set to lapse if those conditions were not met.
The renewed auction notice indicates that the lender has returned to the recovery process after the court conditions attached to the earlier suspension were not met or did not stop the sale permanently.
The High Court had declined to reverse the sale of two other properties, Tamarind Karen and Dari Business Park, after finding that the auction process had already been completed and the assets transferred.
Those properties were acquired in 2024 by Ultra Eureka Limited, a company owned by Stabex International co owner Jackson Kiplimo Chebett, for a reported Sh450 million.
After acquiring the 6.8-acre property, Ultra Eureka disclosed that it charged the title to KCB Bank to secure a loan of about $2.5 million, equivalent to roughly Sh324 million.
Tuju had offered the property together with Entim Sidai Wellness Sanctuary as security for a $9.3 million facility advanced to Dari Limited by EADB in April 2015.
At current exchange rates, the original dollar loan is worth about Sh1.2 billion, but accumulated interest, penalties and other charges have pushed the outstanding claim to approximately Sh4.5 billion.
The loan was structured in two tranches, with the first $9.3 million portion intended to finance the purchase of the 94-year-old bungalow and the surrounding property.
A second tranche of Sh294 million was meant to fund the start of construction works connected to the wider development planned for the Karen estate.
The dispute has remained in court for years, with Tuju maintaining that EADB breached the loan agreement and challenging the lender’s attempts to dispose of the charged properties.
EADB has continued relying on the securities offered under the 2015 agreement, with the sale of the first properties and the planned Entim Sidai auction forming part of its debt recovery process.
The August 25 auction now places the remaining Karen property at the centre of the dispute, with the lender seeking to recover part of the Sh4.5 billion claimed under the loan arrangement.