The East African Development Bank (EADB) has issued a detailed statement defending the auction of a property along Ngong Road tied to a long-running loan dispute involving Dari Limited, a firm associated with former Cabinet Secretary Raphael Tuju.
The regional lender said it was responding to what it described as misleading public commentary surrounding the case, which has recently drawn renewed attention following court rulings in Kenya.
Loan Facility and Default
According to the bank, Dari Limited borrowed USD 9.2 million from the East African Development Bank in April 2015 under a facility agreement negotiated by both parties with legal representation.
The loan was secured using several Nairobi properties owned by the company’s shareholders and directors, which were charged to the bank as collateral.
The funds were drawn in July 2015, but the lender says the loan went into default by the second quarter of 2016.
After issuing demand notices in November 2017 without success, the bank moved to enforce the loan agreement through legal proceedings.
Case Filed in the United Kingdom
The dispute was first filed in the High Court of Justice in the United Kingdom, which was the jurisdiction agreed upon in the loan contract.
The court issued a judgment in favour of the bank for USD 15.16 million, covering the outstanding loan, interest and penalties.
That judgment was later recognised and enforced locally by the High Court of Kenya in February 2020 and upheld by the Court of Appeal of Kenya in April 2023.
The bank said that during the dispute, which has spanned more than seven years, no credible repayment proposal was submitted by the borrower.
Auction of Ngong Road Property
Following the court rulings, the lender proceeded to enforce the security pledged under the loan agreement.
EADB said one of the charged properties located along Ngong Road in Nairobi was auctioned on October 1, 2024, after the bank followed all legal procedures.
At the time of the auction, the bank said there were no court orders stopping the sale, and the property was sold to the highest bidder.
The property has been at the centre of a legal dispute involving Raphael Tuju, who has previously challenged the sale and valuation of the asset in Kenyan courts.
High Court Strikes Out Fresh Challenge
After the auction, Dari Limited filed another suit against the bank and related service providers questioning the valuation and sale of the property.
While an interim injunction had been issued regarding other assets that had not yet been sold, the High Court of Kenya on March 9, 2026 struck out the case and lifted the interim orders.
The ruling effectively cleared the way for enforcement actions linked to the disputed loan.
In its statement, the East African Development Bank said it remains guided by the rule of law, its governance policies and the loan agreement signed with the borrower, adding that court processes must eventually reach finality.
Regional Development Bank
The East African Development Bank was established in 1967 under the former East African Cooperation treaty to support development projects across the region.
Today, the institution is jointly owned by the governments of Kenya, Uganda, Tanzania, and Rwanda, alongside several development and financial institutions.
The lender provides development finance aimed at supporting regional integration and economic growth.
