EADB Maintains Tuju Has Not Settled Ksh1.9 Billion Loan Dispute
In a statement issued Tuesday, the bank said Tuju, through his company Dari Limited, has failed to comply with court rulings requiring payment of approximately Ksh1.9 billion.
The East African Development Bank (EADB) has clarified its position in the ongoing loan dispute involving former Cabinet Secretary Raphael Tuju, stating that no repayment has been made toward the outstanding debt.
In a statement issued Tuesday, the bank said Tuju, through his company Dari Limited, has failed to comply with court rulings requiring payment of approximately Ksh1.9 billion.
Dari Limited secured a loan of USD 9,197,084 (about Ksh1.2 billion) from EADB in 2015, using several properties in Nairobi as collateral. The loan, disbursed on July 29, 2015, fell into default by the second quarter of 2016. Despite demand notices issued in November 2017, the borrower did not respond.
Following the default, EADB filed a case at the High Court of Justice in the United Kingdom. In 2019, the court ruled that Dari Limited should pay USD 15,162,320 (about Ksh1.9 billion), including accrued interest and penalties.
The ruling was later recognized by the High Court of Kenya on February 13, 2020, and upheld by the Court of Appeal of Kenya on April 20, 2023.
EADB emphasized that throughout the dispute, both parties were represented by legal counsel and that no credible repayment proposal has been received from Tuju or his company.
As part of recovery efforts, the bank auctioned a Ngong Road property pledged as security on October 1, 2024. However, Dari Limited later challenged the sale in court, disputing the valuation and other aspects of the process.
While an interim injunction was granted to protect unsold properties, the High Court on March 9, 2026, struck out Tuju’s amended case and lifted earlier orders that had restricted dealings with the assets.
The contested properties include Entim Sidai Wellness Sanctuary in Karen, Tamarind Karen, and Dari Business Park.
Tuju has maintained that the debt is significantly lower than the value of the auctioned properties and insists he has been willing to settle the loan. He has also alleged that the process was politicized.
The former minister has since written to Martha Koome, raising concerns about the conduct and integrity of some judicial officers involved in the matter.
