EADB Fires Back at Tuju, Denies Any Repayment as KSh1.9 Billion Loan Row Deepens

The East African Development Bank (EADB) has firmly addressed the ongoing loan dispute involving former Cabinet Secretary Raphael Tuju, dismissing claims that any repayment has been made toward the contested debt.

In a statement issued Tuesday, the regional lender maintained that Tuju, through his company Dari Limited, has not honoured any court ruling requiring settlement of the KSh1.9 billion owed.

Records show that Dari Limited secured a loan of USD 9.19 million (approximately KSh1.2 billion) from EADB in 2015, using several Nairobi properties as collateral. However, the loan fell into default by the second quarter of 2016, prompting the bank to issue demand notices in November 2017—efforts that went unanswered.

Following the default, EADB moved to the High Court of Justice in England, which in 2019 ruled that Dari Limited repay USD 15.16 million (about KSh1.9 billion), inclusive of accrued interest and penalties. The judgment was later upheld locally, first by the High Court in Nairobi in February 2020, and subsequently by the Court of Appeal in April 2023.

EADB emphasized that despite the protracted legal battle spanning over seven years, it has not received any “credible or verifiable repayment offer” from the debtor.

In line with the loan agreement, the bank proceeded to auction one of the charged properties along Ngong Road on October 1, 2024. The move sparked fresh legal challenges from Dari Limited, which contested the valuation and sale process.

While the company initially secured interim court orders halting further dealings, the High Court on March 9, 2026, struck out Tuju’s amended suit and lifted the injunctions, effectively allowing EADB to proceed with enforcement actions on the remaining properties.

The contested assets include high-value properties in Karen, among them Entim Sidai Wellness Sanctuary and Dari Business Park.

Tuju has, however, disputed the valuation of the auctioned property, arguing that the outstanding debt is significantly lower than the value of his assets. He maintains that he has always been willing to settle the loan, while alleging that the recovery process has been politicised.

The former CS has since escalated the matter, writing to Chief Justice Martha Koome, raising concerns over the conduct and integrity of some judicial officers involved in the case.