The East African Development Bank (EADB) has issued a detailed statement defending its decision to auction a Nairobi property belonging to Kenyan borrower Dari Limited, saying the sale followed years of loan default, court judgments, and unsuccessful recovery efforts.
In the statement released Monday, the regional development bank said the move was prompted by widespread public discussion and what it described as “grossly misleading” commentary about the dispute involving one of its debtors in Kenya.
Loan and default
According to the bank, the dispute traces back to April 10, 2015, when Dari Limited, a company registered in Kenya, obtained a loan facility of USD 9,197,084 from EADB.
The facility agreement was negotiated and signed by both parties with legal representation.
As collateral for the loan, the company’s shareholders and directors pledged several Nairobi properties, which were formally charged in favor of the bank as security.
The loan was subsequently drawn on July 29, 2015, after the security interests had been duly registered.
However, EADB said the borrower defaulted on the loan by the second quarter of 2016, forcing the bank to issue demand notices to Dari Limited in November 2017. The bank says those notices were ignored.
Court proceedings in the U.K. and Kenya
Following the default, EADB initiated legal proceedings in the High Court of Justice in England, as stipulated under the governing law and forum agreed in the loan facility agreement.
On June 19, 2019, the English court awarded judgment in favor of EADB for USD 15,162,320.95, representing the outstanding principal, interest, and penalties accrued under the agreement.
The judgment was later recognized and confirmed by Kenyan courts.
The High Court in Nairobi upheld the U.K. judgment on February 13, 2020, and the Court of Appeal in Nairobi reaffirmed the decision on April 20, 2023.
EADB emphasized that throughout the seven-year dispute, it had not received any credible or verifiable repayment proposal from the borrower, despite public claims suggesting otherwise.
Auction of the Ngong Road property
With the debt unresolved, the bank proceeded to enforce the security pledged by the borrower.
EADB said it auctioned a property located on Ngong Road in Nairobi on October 1, 2024, after completing all required legal processes. The property had been pledged by Dari Limited as part of the loan security.
The bank stated that the sale followed a competitive bidding process and that the highest bidder purchased the property at auction.
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Borrower’s legal challenge
After the auction, Dari Limited filed a lawsuit against the bank and several service providers involved in the transaction, challenging aspects of the property’s valuation.
The borrower obtained an interim injunction, but the bank said the order could only apply to property that had not yet been sold.
In a ruling delivered on March 9, 2026, the High Court in Nairobi struck out the borrower’s suit, effectively vacating the interim orders that had been issued earlier.
Bank responds to public controversy
EADB said the public controversy surrounding the matter had been driven largely by misinformation.
The bank said it remains committed to the rule of law and has acted in accordance with its internal governance policies and the contractual terms agreed with the borrower.
“The bank distances itself from the ongoing public theatre of the borrower’s distortion of facts and disinformation,” the statement said.
It added that the matter should now be considered settled, emphasizing the importance of finality in court decisions.
Background to the dispute
The matter has also attracted attention due to its links to former Kenyan Cabinet minister Raphael Tuju, who has publicly raised concerns over the loss of a 27-acre property in Karen, Nairobi, previously associated with Dari Business Park.
According to reporting by Citizen TV, Tuju has questioned the circumstances surrounding the auction of the property, including the valuation and the process that led to its transfer. He has suggested that the outstanding loan amount may be lower than the value of the property, while indicating that he has been willing to engage in efforts to settle the debt.
Citizen TV further reported that Tuju and individuals associated with the business park were at one point unable to access the premises, where security presence had been heightened. He has also expressed a desire to retrieve personal and office belongings from the property.
The property is reported to have since been acquired by Jackson Chebet of Ultra Eureka Limited, although Tuju has indicated he is continuing to contest aspects of the transaction while seeking a resolution to the outstanding loan obligations.
He has also indicated, in media remarks cited by Citizen TV, that the original loan facility was in the region of USD 9 million, and that he has previously explored options to repay the amount.
