Court freezes auction of Raphael Tuju’s properties pending April hearing in ongoing loan dispute
Former Raphael Tuju has secured temporary relief in a high-stakes legal battle that has threatened his multi-billion-shilling properties, marking yet another twist in a prolonged and complex dispute that has dominated headlines in recent months. The Commercial Court’s decision to freeze the auction or transfer of his assets offers him a short-term lifeline as he prepares to continue fighting the case when it comes up for a full hearing on April 7.
The ruling comes at a critical time for Tuju, who has been embroiled in a long-running financial and legal dispute tied to a loan facility dating back several years. At the heart of the matter is a debt linked to his company, Dari Limited, which reportedly defaulted on a loan advanced by the East African Development Bank. The loan, initially intended to fund real estate developments in Nairobi’s upscale Karen area, has since spiraled into a multi-billion-shilling recovery battle involving lenders, auctioneers, and the courts.
In recent weeks, the situation had taken a dramatic turn against Tuju. A High Court ruling delivered earlier in March cleared the way for the auction of his prime properties after the court struck out his attempt to block the sale. This decision effectively removed earlier protections that had prevented auctioneers from moving in, exposing his assets—including high-value land and developments—to imminent sale as part of debt recovery efforts.
Among the properties at risk are some of Tuju’s most prominent investments, including parcels of land in Karen associated with luxury developments and commercial ventures. These assets had been used as security for the loan, and lenders have been aggressively pursuing their sale after years of legal battles and alleged default.
Tuju’s legal troubles, however, did not begin recently. The dispute can be traced back to around 2015 when the loan facility was first secured. Since then, the matter has moved through multiple legal forums, including courts in Kenya and even internationally. Judgments from foreign courts were recognized locally, strengthening the lender’s position and complicating Tuju’s attempts to block enforcement. Over the years, he has filed several applications seeking injunctions, appeals, and reviews, many of which have been dismissed by the courts.
The former Jubilee Secretary General has consistently maintained that the process leading to the enforcement of the debt has been flawed. He has raised concerns about alleged irregularities, including claims of misconduct and conspiracy involving legal representatives and other parties connected to the case. At one point, Tuju even reported the matter to investigative authorities, arguing that there had been manipulation of evidence and abuse of the legal process.
Despite these claims, courts have largely sided with the lenders and auctioneers, repeatedly ruling that the matter had already been conclusively determined and could not be reopened. In one ruling, the court described attempts to revisit the case as an abuse of the judicial process, emphasizing that the debt and its enforcement had been upheld across multiple legal stages.
The latest reprieve, therefore, does not resolve the dispute but merely pauses the immediate threat facing Tuju. The Commercial Court’s directive effectively freezes any auction or transfer of the contested properties, ensuring that they cannot be sold before the case is fully heard. This temporary safeguard is significant, as Tuju’s legal team had warned that proceeding with the auction before the appeal is heard would render the entire legal process meaningless.
For Tuju, the stakes remain extremely high. Losing the properties would not only mark a major financial blow but also bring an end to a business empire he has built over years. Politically, the case has also placed him under scrutiny, given his prominence as a former Cabinet Secretary and a key figure in Kenya’s political landscape during the Jubilee administration.
As the case heads toward the April 7 hearing, attention will be focused on whether the court will extend the protection or allow the auction process to proceed. The outcome could set a significant precedent on how courts handle long-running commercial disputes, particularly those involving large financial institutions and high-profile individuals.
For now, Tuju has bought himself time—but the broader battle is far from over. The coming weeks are likely to determine whether this temporary relief becomes a turning point in his favor or merely a brief pause before a potentially irreversible outcome.
