KAMPALA, Uganda — The East African Development Bank (EADB) has defended its handling of a long-running loan dispute involving Kenyan firm Dari Limited, citing multiple court rulings in its favour and dismissing recent public claims as misleading.
In a position statement issued Monday, the regional lender said it was compelled to clarify the matter following heightened public interest and what it described as “grossly misleading” commentary surrounding the case.
According to the bank, Dari Limited secured a loan facility of USD 9.19 million in April 2015 under a legally negotiated agreement, with both parties represented by counsel. The facility was backed by several properties in Nairobi pledged by the company’s shareholders and directors.
EADB said the loan was fully drawn in July 2015 after the securities were duly registered. However, the account fell into default by the second quarter of 2016, prompting the bank to issue demand notices in November 2017, which it says were not honoured.
Following the default, the bank initiated legal proceedings at the High Court of Justice, in line with the governing law clause in the loan agreement. On June 19, 2019, the court entered judgment in favour of the bank for USD 15.16 million, inclusive of accrued interest and penalties.
The judgment was subsequently recognised and enforced in Kenya by the High Court of Kenya in February 2020 and later upheld by the Court of Appeal of Kenya in April 2023.
“At no point over the course of this seven-year-long dispute has the EADB received any credible or verifiable repayment offer from the debtors,” the bank stated.
The lender said it proceeded to exercise its statutory power of sale after exhausting legal avenues, culminating in the auction of a property along Ngong Road on October 1, 2024.
According to EADB, the sale was conducted in compliance with all legal requirements and in the absence of any court orders barring the transaction.
Subsequently, Dari Limited filed a fresh suit in the High Court in Nairobi challenging, among other issues, the valuation of the property and the auction process. The company obtained interim orders, which the bank argued could not apply to property already sold.
In a ruling delivered on March 9, 2026, the High Court of Kenya struck out the suit, effectively lifting the interim injunctions and affirming the bank’s position.
The EADB said it remains guided by the rule of law and contractual obligations, insisting that the matter has been conclusively determined by competent courts.
“The bank distances itself from the ongoing public theatre of the borrower’s distortion of facts and disinformation,” the statement read.
The dispute highlights the legal and financial risks associated with defaulted commercial loans, particularly those involving cross-border enforcement mechanisms and secured assets.
EADB reiterated that it will continue to uphold its governance standards and legal rights in recovering public funds, stressing the need for finality in litigation as affirmed by court decisions in both the United Kingdom and Kenya.
