- Tuju argued against the auction, but the Supreme Court ruled in favor of the East African Development Bank
- The auction is scheduled to take place on October 29 at 11 a.m. at Garam Investments offices in Westlands
- Former Cabinet Secretary Raphael Tuju's Entim Sidai wellness sanctuary in Karen is set to be auctioned on October 29 due to a defaulted loan of Sh4.5 billion
The troubles surrounding former Cabinet Secretary Raphael Tuju show no signs of easing, as auctioneers have listed his Entim Sidai wellness sanctuary in Karen for public auction.
This is due to a defaulted loan amounting to Sh4.5 billion. The property, which sits on 20.2 acres of prime land, is scheduled to be auctioned on October 29, 2024.
Previous auction attempt halted
Earlier efforts to auction Tuju’s prime properties, including Dari Coffee and Garden restaurant and the Entim Sidai sanctuary, were scheduled for October 1.
However, Tuju successfully moved to court under a certificate of urgency, obtaining a temporary halt on the sale.
He argued that the East African Development Bank (EADB), the institution seeking repayment of the loan, had unlawfully issued the notifications of sale.
He also raised concerns about the manner in which the bank had approached the loan recovery, asserting that the process was in violation of his rights.
Court dismisses Tuju's plea
However, the Supreme Court had previously ruled in favour of the East African Development Bank, allowing the financial institution to proceed with recovery actions.
The bank emphasised its compliance with legal procedures, stating, "The Supreme Court confirmed that we are a reputable international financial institution, and we would be able to repay the applicants should their appeal succeed."
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On September 30, Justice Njoki Mwangi rejected Tuju’s application to halt the auction process, concluding that "the balance of convenience tilts in favour of the bank, which should recoup the facility it advanced Dari Limited." This ruling paved the way for the auction of Entim Sidai to proceed.
Auction date set for October 29
Following the court’s decision, auctioneers placed another advertisement on October 7, listing Entim Sidai as the only property set to be auctioned.
According to the auctioneers, the sale will take place on October 29 at 11 a.m. at Garam Investments offices in Westlands.
The debt arises from a Sh1.5 billion loan that Tuju had obtained from the East African Development Bank.
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His children acted as guarantors for the loan, which was intended to fund the construction of 12 luxury two-storey bungalows, each valued at Sh100 million, on the Entim Sidai property.
Unfortunately, the project stalled, and the loan defaulted, leading to the accumulation of significant interest over time.