Former Cabinet Secretary Raphael Tuju secured a temporary reprieve on Wednesday, March 18, after the High Court blocked any transfer or assignment of a disputed property in Karen linked to Dari Limited.
The case pits Tuju and his family members against several respondents, including the East African Development Bank (EADB), Knight Frank Valuers Limited, and Ultra Eureka Limited, among others, over a dispute tied to the receivership of Dari Limited and a multi-billion-shilling debt.
The ruling comes after an earlier ruling on Tuesday, March 10, cleared the way for EADB to auction three properties in Karen to recover the loan advanced to Dari Limited a decade ago.
Tuju Property Dispute
Tribulations against Tuju began 11 years ago, precisely in 2015, when the East African Development Bank (EADB) granted the former Rarieda MP a loan of KSh. 943.9 million to fund the acquisition and development of commercial units for sale in Nairobi.
The deal, according to court papers, was granted a 24-month grace period, which lapsed in 2017.
In November 2018, the East African Development Bank (EADB) filed a case against Dari Limited, a company registered under Raphael Tuju’s name, in the High Court of Justice Business and Property Courts of England and Wales.
The bank claimed that Dari Limited had failed to repay the disbursed loan in accordance with the agreement, and Tuju and his company subsequently filed a defence.
In June 2019, the EADB obtained a judgment against the appellants in London and later filed an application at the High Court in Nairobi under the Foreign Judgments Reciprocal Enforcement Act, seeking recognition, registration, and enforcement of the London judgment.
Also Read: Judiciary Explains Why Court Dismissed Tuju’s Bid to Stop Property Auction
Market Value of Entim Sidai and Dari Properties
An independent valuation conducted by Knight Frank Valuers Limited on July 15, 2024, put the market value of the Entim Sidai and Dari properties at Ksh1.395 billion and Ksh590 million, respectively, bringing the combined value to Ksh1.985 billion.
Market value, according to international valuation standards, is the estimated amount for which an asset or liability would sell on the valuation date between a willing buyer and a willing seller in an arm’s-length transaction.
This assumes proper marketing and that both parties act knowledgeably, prudently, and without compulsion.
The report also included “forced sale values”—the estimated amounts if the properties were sold under compulsion—at Ksh1.046 billion for Entim Sidai and Ksh442.5 million for Dari.
In Kenya, the Land Act No. 6 of 2012 provides under section 97 that a charged property shall not be sold by a chargee (exercising his power of sale), at less than 75% of the market value.
In Tuju’s case, Knight Frank applied 75 percent of the market value as the forced-sale value, in line with Kenya’s Land Act No. 6 of 2012, which stipulates that a charged property cannot be sold by a chargee for less than 75 percent of its market value.
Also Read: East African Development Bank Breaks Silence After Tuju’s Auction and Tears
Size and Details of Tuju’s Multi-Billion Shilling Karen Properties
Dari properties, located in Nairobi’s upscale Karen area off Ngong Road, about 1.2 kilometres northeast of Karen Roundabout, are at the centre of former Cabinet Secretary Raphael Tuju’s contested empire.
The 2.787-hectare (approximately 6.887 acres) site includes a restaurant trading as Tamarind Brasserie Karen, complete with a main building, conference hall, gazebos, pavilions, manicured lawns, and walkways.
The estate also houses commercial buildings known as Dari Business Park, currently let to individual tenants.
The properties are held on a 99-year leasehold from September 1, 2010, with an unexpired term of about 85 years.
Ownership is registered in the names of Tuju and the Africa Wildlife Foundation as tenants in common, though current shares are not yet fully confirmed. In a 2015 full valuation, the Africa Wildlife Foundation was in the process of transferring its share to Tuju.
Another key asset in Tuju’s portfolio is the Entim Sidai Wellness Sanctuary, located off Tree Lane in Karen, roughly 800 metres south of the Tree Lane/Ngong Road junction and 1.2 kilometres southwest of the Karen Shopping Centre roundabout.
Entim Sidai spans approximately 8.164 hectares (20.2 acres) and features a mix of older colonial-style structures and newer developments.
Existing buildings include a nine-bedroom house, a two-bedroom bungalow, staff quarters, a swimming pool, a lawn tennis court, and various temporary structures. At the time of Knight Frank’s inspection, a residential section was under construction, featuring 12 villas with 5- and 7-bedroom standalone houses.
Each villa occupies plots ranging from 0.25 to 0.5 acres, with built-up areas of 517 square metres for 5-bedroom units and 667 square metres for 7-bedroom units.
The property is held in freehold title under the name Dari Coffee Garden & Restaurant and is operated as a hotel under the trading name Entim Sidai Wellness Sanctuary.
