Former Cabinet Secretary Raphael Tuju and Dari Limited have lost their bid to stop the auction of Entim Sidai Wellness Sanctuary in Karen, Nairobi, after failing to meet a Sh50 million court security condition.
The court ruled that the Sh52.5 million held in another account under an earlier Court of Appeal case could not be used to protect the property because they were required to make a fresh deposit.
This comes two years after East African Development Bank (EADB) auctioned Tuju’s Tamarind Karen and Dari Business Park for Sh450 million, as part of efforts to recover an outstanding loan advanced over a decade ago, though he is seeking to reverse the sale.
The High Court on Thursday ruled that an order protecting Entim Sidai had automatically lapsed on June 22, 2026, because Tuju and Dari Limited did not deposit Sh50 million in a new interest-earning joint account within 30 days.
“Since the applicants failed to deposit the Sh50 million in the manner ordered within 30 days, I hold and find that the stay order issued on May 21, 2026 lapsed automatically on June 22, 2026,” the judge ruled, dismissing their application to block the auction.
The dispute centred on Sh52.5 million held in a joint account at NCBA Bank in the names of the parties’ lawyers.
Tuju and Dari Limited argued that the money, which had been deposited in 2020 under an earlier Court of Appeal proceeding, was sufficient to meet the Sh50 million security requirement set by the High Court in May 2026.
However, East African Development Bank (EADB) maintained that the funds related to a separate case and could not be used to satisfy the fresh deposit ordered by the court.
The court agreed with EADB, ruling that the Sh52.5 million deposited in 2020 could not be used to satisfy the fresh security requirement.
The origin of the dispute between Tuju and EADB dates back to April 2015, when Dari Limited and SAM Company Limited obtained a $9.3 million (Sh1.2 billion) loan from the regional lender to acquire land in Karen and develop luxury residential properties for sale.
Entim Sidai, Tamarind Karen and Dari Business Park were used to secure the loan, alongside personal guarantees from Tuju.
The dispute erupted after EADB accused the borrowers of defaulting, while Mr Tuju maintained that the bank had failed to release the full development financing, triggering a prolonged debt recovery battle in the UK and Kenyan courts.
EADB obtained a 2019 English judgment for $15.16 million (Sh1.96 billion), including principal, interest and charges. The bank said about Sh1.9 billion remained unpaid in March 2026; Tuju disputes its account and handling of the facility.
In October 2024, EADB auctioned Mr Tuju’s Tamarind Karen and Dari Business Park, selling the properties for Sh450 million to Ultra Eureka Limited, a company associated with businessman Jackson Kiplimo Chebett.
The buyer subsequently took possession and registered the property in its name, making Entim Sidai the next major property targeted in the lender’s recovery efforts.
In their latest application dated August 5, 2026, Tuju and Dari Limited sought to stop the auction and have the August 3 auction notice cancelled. They also asked the court to enforce its May 21 orders protecting the property and initiate contempt proceedings against officers of East African Development Bank and Garam Investment Auctioneers for allegedly disobeying them.
Additionally, they sought a retraction and apology of equal prominence to the auction advertisement.
The May 21 order preserved the property pending an intended appeal. It required the applicants to deposit Sh50 million within 30 days in an interest-earning joint account held by the parties’ lawyers.
“The plaintiffs shall, within 30 days, deposit security in the sum of Sh50 million in an interest-earning joint account in the names of counsel for the parties, failing which the stay orders shall automatically lapse,” the order stated.
Tuju’s lawyers told the court that Sh52.5 million was held in an NCBA account, jointly operated by V.A. Nyamodi & Co. and Mohammed Muigai LLP.
The money was deposited under a June 19, 2020 order in a Court of Appeal case. Tuju said it became available after the appeal was dismissed on April 20, 2023.
EADB disputed that position. Its lawyers, Kaplan & Stratton, wrote on June 5, proposing Stanbic, Absa and Standard Chartered for an account. The bank said Tuju’s lawyers did not respond.
“It is not controverted that the applicants failed to respond to the second defendant’s proposal of June 5, 2026 regarding banks for the joint account and took no steps to deposit fresh funds,” the judge said.
EADB said the earlier funds belonged to the separate appeal and had vested in the bank or successful parties after its dismissal with costs. The May order required a new account for the current case.
Justice Ado called the May order “self-executing” and Mr Tuju’s reliance on the earlier deposit “misconceived”. It arose from “an entirely distinct appellate process”, he said.
“It therefore follows that the applicants’ attempt to rely on a deposit made in June 2020 pursuant to orders in an entirely distinct appellate process is misconceived. The applicants cannot unilaterally choose to apply funds deposited pursuant to a separate appellate proceeding to satisfy a new conditional order of the High Court issued in May 2026,” said the judge.
