Former Cabinet Secretary Raphael Tuju is on a losing spree as the auctioneers raid his properties to settle a bank debt.
Tuju is said to have defaulted loan from the East African Development Bank (EADB) valued at Kshs 4.5 billion.
His firms Dari Ltd and SAM Company Ltd entered into a facility agreement with the lender for a loan of $9.3 million (KSh1,199,661,328.49 at the current exchange rate) in 2015 to expand his business.
The loan was secured by several forms of collaterals, including an indemnity and guarantee agreement on April 10, 2015. His properties Entim Sidai alongside Tamarind Karen and Dari Business Park, were charged as security for the loan.
Tuju instigated a legal battle in 2021 which went in EADB’s favour after the High Court allowed the lender to recover the defaulted debt.
“The Dari property was successfully sold on the first of October 1, 2024. An unknown buyer bid it at Sh450 million,” an eye witness at the auction disclosed.
A Mystery Buyer
He has already lost his Dari Restaurant in Karen Nairobi, valued at Kshs 450 million following an auction of the property on October 1.
Dari is situated in the affluent Karen suburb of Nairobi. It is a 6.9-acre property favored for upscale events and fine dining. It also harbors spacious conference facilities.
An unknown buyer dropped a Sh450 million bid on the hammer which was enough to take away the prime property from former President Kibaki’s advisor.
Garam Auctioneers CEO, Joseph Gikonyo, confirmed the sale and added that a deposit of Sh45 million has already been paid.
Tuju’s Pleas
Tuju was not a happy man. He moved to court to appeal the matter.
According to him, the auctioneers unlawfully issued the notifications advertising the sale of the property. This is because there were several cases pending determination in various courts of law.
He also argues that he wasn’t served with a statutory notice under section 90 of the Land Act.
The former Rarieda MP said the lender is seeking to recover $35,051,622 (about Sh4.5 billion), an amount that has exceeded the principal amount, on account of interest.
The bank had opposed the case stating that Mr Tuju had admitted the debt and had unsuccessfully pleaded with the court for the matter to be resolved through mediation on the mode of payment.
When It Rains It Pours
The loss of Dari is a major setback for the former Jubilee Secretary General. He is a big fish in the real estate market especially in the upscale Karen estate.
The former Rarieda MP is fighting to retain his multi-billion estate in Karen. The loan agreement made in 2015 has several cases pending before the Supreme Court.
Tuju is challenging the enforcement of a UK judgment where he was found to have breached the agreement. He is also contesting the bank’s claims in the High Court.
