Former Cabinet Secretary Raphael Tuju has suffered a significant legal setback after the High Court allowed the auction of his high-value Dari Business Park property in Karen over a disputed Sh2.2 billion loan.
In a ruling delivered on Wednesday, the court cleared the lender to proceed with the sale of the commercial property as part of efforts to recover the outstanding debt linked to Tuju and associated companies.
Court Suspends Sale of Entim Sidai Property
While allowing the auction of Dari Business Park to continue, the court temporarily stopped the planned sale of another property associated with Tuju, known as Entim Sidai, pending further hearing and determination of the case.
The judge issued stay orders protecting Entim Sidai from immediate auction but declined to grant similar orders for Dari Business Park, effectively opening the door for auctioneers to proceed with the Karen property sale.
Tuju Ordered to Deposit Sh50 Million
As part of the court directives, Tuju was ordered to deposit Sh50 million within 30 days as security.
The court warned that failure to comply with the order would allow the lender to move ahead with the auction of Entim Sidai as well.
The latest ruling marks another chapter in the prolonged legal dispute between Tuju and a commercial bank over the multibillion-shilling loan facility.
Dispute Over Loan Recovery Process
Tuju had sought court intervention to block the auction of both properties, arguing that the planned sales would cause irreparable losses and raising concerns about the lender’s recovery process.
The former Cabinet Secretary has faced multiple court battles related to the debt, with the lender pursuing recovery measures following alleged default on loan repayments.
High-Value Karen Property at Risk
The case has drawn public attention due to the value of the properties involved and Tuju’s prominence in Kenya’s political and business circles.
Dari Business Park, located in the upscale Karen area, is considered one of the most valuable commercial properties associated with the former minister.
Following the ruling, the property now faces immediate risk of sale unless further legal action is taken.
Case to Continue in Court
The matter is expected to proceed for further hearing as both parties continue contesting issues surrounding the loan recovery process and ownership claims tied to the securities.
