The High Court has declined to stop the sale of former Cabinet Secretary Raphael Tuju’s Dari Business Park in Karen, ruling that the property had already been sold through a public auction as part of efforts to recover a disputed Ksh.2 billion debt owed to the East African Development Bank (EADB).
However, the court temporarily stopped any further action against Tuju’s Entim Sidai Wellness Sanctuary property pending the hearing and determination of an appeal before the Court of Appeal.
In his ruling delivered on Thursday, High Court Judge Moses Otieno said stay of execution orders could not apply to Dari Business Park because the transaction had already been completed and ownership transferred to another party.
“The evidence before this court however demonstrates that one of the properties, Tamarind, Karen and Dari Business Park was sold at a public auction, transferred to the 10th defendant (Ultra Eureka Limited) and possession taken. In respect of that property, the applicant’s equity of redemption was extinguished upon the fall of the hammer,” ruled the judge.
“The law is clear that once such a sale has taken place, the remedy available to an aggrieved chargor lies in damages pursuant to Section 99 of the Land Act. This position has been affirmed by the authorities such as Simon Njoroge where the court held that a completed sale cannot be undone through injunctive relief and any loss is compensable,”added.
The court’s decision followed an application by Tuju seeking to suspend the implementation of a March 9 ruling that cleared the way for the disposal of the two Karen properties linked to the debt dispute with EADB.
While granting temporary relief for Entim Sidai Wellness Sanctuary, the court directed Tuju to deposit Ksh.50 million within 30 days in a joint interest-earning account operated by lawyers representing both parties.
The court warned that failure to comply with the condition would automatically cancel the stay orders.
Justice Otieno also granted Tuju permission to challenge the March ruling at the Court of Appeal within 60 days.
In the earlier decision, Lady Justice Josephine Wayua Wambua Mongare struck out Tuju’s amended plaint dated April 25, 2025, saying the case amounted to an abuse of the court process.
“In summary, the Plaintiffs are essentially asking the court to re-hear an injunction already denied, re-open a debt already adjudicated internationally and recognized domestically and re-litigate the enforceability of security over properties already subject to multiple court orders,” the judge ruled.
“I find that the Bank’s position and objection is well-founded that this application is a blatant abuse of court process, meant to frustrate its lawful recovery efforts after years of default and litigation. There is no way that the Plaintiff’s Amended Plaint dated 25th April 2025 survives and the same is accordingly struck out,” judge concluded.
The court further noted that the Ksh.50 million security requirement was meant to ensure the appeal process is not used to delay enforcement of the debt recovery process.
