NAIROBI, Kenya — Former Cabinet Secretary Raphael Tuju has suffered a major legal setback after the High Court cleared the auction of his multi-billion-shilling Dari Business Park property in Karen over a disputed Sh2.2 billion loan.
In a ruling delivered on Wednesday, the court allowed the sale of Dari Business Park to proceed, paving the way for the lender to recover part of the debt owed by Tuju and his associated companies.
However, the court temporarily halted the auction of another property linked to the former CS, known as Entim Sidai, pending the hearing and determination of the case.
The court issued stay orders stopping the sale of Entim Sidai but declined to extend similar protection to Dari Business Park, effectively allowing auctioneers to proceed with the sale of the Karen property.
As part of the orders, the court directed Tuju to deposit Sh50 million as security within 30 days. The judge warned that failure to comply with the directive would open the door for the auction of the Entim Sidai property as well.
The ruling marks the latest development in a prolonged legal dispute between Tuju and a commercial bank over a loan facility reportedly amounting to Sh2.2 billion.
Tuju had moved to court seeking to block the auction of the two properties, arguing that the planned sales would cause irreparable loss and questioning aspects of the recovery process by the lender.
The former Cabinet Secretary has been embroiled in a series of court battles linked to the debt, with the lender pursuing recovery measures after alleged default on the loan repayments.
The dispute has attracted public attention due to the value of the properties involved and Tuju’s prominence in Kenya’s political and business circles.
Dari Business Park, located in the upscale Karen area, is considered one of the high-value commercial properties associated with the former minister. The court’s decision now places the property at immediate risk of sale unless further legal intervention is secured.
The case is expected to proceed for further hearing as parties continue contesting the recovery process and ownership claims tied to the securities.
