The East African Development Bank (EADB) has issued a detailed statement addressing the controversy surrounding the financial dispute involving former Cabinet Secretary Raphael Tuju and his company Dari Limited, following heightened public debate over the planned auction of properties linked to the debt.
In a statement released Monday from Kampala, the regional lender said it had been compelled to clarify the matter after what it described as “misleading commentary” circulating in public discourse regarding the loan dispute.
According to the bank, Dari Limited secured a loan facility worth USD 9,197,084 in April 2015, with several properties in Nairobi pledged as collateral by the company’s shareholders and directors.
The funds were later drawn in July the same year after the properties were formally charged in favour of the bank.
However, the bank said the loan fell into default by the second quarter of 2016, prompting it to issue demand notices to the company in November 2017. EADB stated that the notices were ignored, forcing it to pursue legal action.
The lender subsequently filed proceedings before the High Court of Justice in the United Kingdom, the jurisdiction agreed upon in the original loan facility agreement.
On June 19, 2019, the court ruled in favour of the bank, awarding it USD 15,162,320.95, covering the principal loan amount, interest and penalties accrued under the agreement.
The ruling was later recognised locally by the High Court of Kenya in February 2020 and subsequently upheld by the Court of Appeal of Kenya in April 2023.
EADB stated that despite the prolonged legal process spanning several years, it had not received any credible repayment proposal from the debtor.
As part of recovery efforts, the bank confirmed that a property on Ngong Road that had been used as security was auctioned on October 1, 2024, after what it said were proper legal procedures.
The property was sold to the highest bidder, with the bank noting that no court order had blocked the sale at the time of the auction.
Dari Limited later challenged the transaction in court, questioning the valuation of the property.
While the company obtained temporary orders preventing the sale of other pledged properties, the High Court in Nairobi struck out the case on March 9, 2026, effectively lifting the interim protections.
In its statement, EADB distanced itself from what it described as attempts by the borrower to distort facts surrounding the dispute, adding that the bank remains guided by the rule of law and the terms of the original loan agreement.
The dispute has drawn significant public attention in Kenya, particularly due to the potential auction of additional high-value properties linked to Tuju in Nairobi’s Karen area.