Former Cabinet Secretary Raphael Tuju is under pressure to settle a Sh4.5 billion loan or risk losing two prime properties in the Karen area of Nairobi to public auction.

The properties in question include the Dari Business Park and Entim Sidai Wellness Sanctuary, both highly valued assets in the affluent neighbourhood.

Auctioneers from Garam Investments issued the notice to Tuju on July 24, 2024, stipulating a 45-day deadline for the repayment of the debt owed to the East African Development Bank (EADB).

This directive follows instructions from Kaplan and Stratton Advocates, who are acting on behalf of the regional bank.

Should Tuju fail to clear the amount, the properties are scheduled to go under the hammer on October 1, 2024.

Read More

  1. Supreme Court to decide fate of Finance Act 2023 after hearing appeal by Govt
  2. Kenyans hold breath as Supreme Court suspends Finance Act 2023 nullification
  3. UK Govt commits Sh976 million to fight preventable maternal, newborn deaths

The letter from the auctioneers stated: “We have been instructed by Messrs. Kaplan and Stratton Advocates on behalf of the Chargee East African Development Bank to sell the above-mentioned property by public auction.”

They further informed Tuju, “We therefore on behalf of the Chargee hereby give you notice of forty-five (45) days from the date of service of this notice, within which time you may redeem the property by paying a sum of USD 35,057,622.14 as at 30th June 2024 on which interest continues to accrue + GBP 100,000 failing which we shall on expiry of the period of notice sell your property by public auction on 01.10.2024 AT 11.00 A.M At Our Offices Located On 5th Floor, Western Heights, Karuna Road Westlands, Nairobi.”

In the valuation reports attached to the auction notice, the Entim Sidai Wellness Sanctuary, situated off Tree Lane in Karen, is valued at Sh1.395 billion as of July 15, 2024.

The Dari Business Park, located along Ngong Road, carries a valuation of Sh590 million as of the same date.

The auctioneers have outlined their charges for the sale, with Sh24,497,200 allocated for the Entim Sidai property and Sh10,490,200 for Dari Business Park. In the event that either property fails to sell, the charges would still apply, albeit at reduced rates of Sh12,291,100 for Entim Sidai and Sh5,287,600 for Dari Business Park.

This auction notice is the latest development in a prolonged legal battle between Tuju and EADB.

The dispute dates back to April 2015, when Tuju secured a USD 9.3 million facility from the bank, intended for the acquisition and development of commercial units in Nairobi.

However, Tuju has yet to fulfil his repayment obligations, leading to multiple legal confrontations in various courts.

The matter has traversed through the judicial systems of both the United Kingdom and Kenya.

It is currently pending before the Supreme Court of Kenya, following earlier rulings from the High Court and the Court of Appeal that upheld the obligation for the debt to be repaid.

In their judgement, the Court of Appeal judges remarked, “At the end of it all, we think the appellant is merely hanging onto technicalities in order to avoid his just obligations arising from the contract of guarantee.”

The clock is now ticking for Tuju to either settle the debt or face the loss of his valuable properties through the public auction slated for early October.