The East African Development Bank (EADB) has stated that former Cabinet Secretary Raphael Tuju has not repaid a Ksh1.9 billion debt despite multiple court rulings. The Tuju debt dispute, clarified on March 17, 2026, follows years of legal proceedings in both the United Kingdom and Kenya.
According to the bank, the outstanding amount relates to a loan issued in 2015 to Dari Limited, a company associated with Tuju. The lender maintains that no credible repayment has been made since the dispute began.
Tuju Debt Origin and Loan Default
The Tuju debt traces back to a loan of USD 9,197,084 (about Ksh1.2 billion) issued to Dari Limited in July 2015. The facility was secured using several Nairobi properties, which were charged to EADB.
However, the borrower defaulted in the second quarter of 2016. As a result, the bank issued demand notices in November 2017, which it says were not honored.
Tuju Debt Ruled in UK and Kenya Courts
Following the default, EADB filed a case at the High Court of Justice in England. In 2019, the court ruled that USD 15,162,320 (about Ksh1.9 billion), including interest and penalties, was payable.
Subsequently, the High Court in Nairobi recognized the UK judgment on February 13, 2020. The Court of Appeal later upheld the decision on April 20, 2023.
EADB said both parties were represented by legal counsel during the proceedings.
Tuju Debt and Property Auction
As part of recovery efforts, EADB auctioned one of the secured properties on Ngong Road on October 1, 2024. The property had been pledged by Dari Limited as collateral.
However, after the auction, Dari Limited filed a case challenging the valuation and related processes. The company sought court intervention to stop further actions on the remaining assets.
Court Ruling Clears Path for Asset Recovery
In a ruling delivered on March 9, 2026, the High Court struck out Tuju’s amended plaint. The decision also lifted interim orders that had previously blocked EADB and its agents from dealing with the contested properties.
The affected assets include Entim Sidai Wellness Sanctuary in Karen and Tamarind Karen and Dari Business Park along Ngong Road.
Tuju Responds to Debt Dispute
Tuju has disputed aspects of the Tuju debt recovery process. He argues that the amount claimed is lower than the value of the auctioned properties.
He has also stated that he has been willing to repay the debt. However, he has questioned the procedures followed during the asset recovery process and alleged that the matter has been politicized.
In addition, Tuju recently wrote to Chief Justice Martha Koome, raising concerns about the conduct of certain judicial officers.
EADB Position on Tuju Debt
EADB maintains that no verifiable repayment proposal has been received over the course of the dispute. The bank said the recovery process has followed legal procedures supported by court rulings in both jurisdictions.
“At no point… has the EADB received any credible or verifiable repayment offer,” the bank stated.
Outlook for Tuju Debt Case
The Tuju debt dispute is expected to continue as legal and administrative processes unfold. With court orders now lifted, EADB may proceed with recovery actions on remaining assets.
At the same time, Tuju’s legal challenges and complaints suggest further developments could arise in the case.
The outcome may have broader implications for enforcement of cross-border financial judgments and secured lending in the region.
