The High Court is currently navigating a complex property dispute involving former Cabinet Secretary Raphael Tuju as legal teams clash over the legitimacy of a sale involving the multibillion-shilling Dari property in Karen.
During a substantive hearing on Tuesday before Justice Moses Ado, the 10th defendant, Ultra Eureka Limited, asserted that it acquired the land legally through a public auction. The company informed the court that it purchased the property on October 1, 2024, acting on the statutory power of sale exercised by the second defendant, Knight Frank Valuers Limited.
Ultra Eureka Limited emphasized that it had already taken possession of the property well before any legal intervention occurred. The company maintained that the court only issued interim orders to stop the auction on October 28, 2024, nearly four weeks after the transaction concluded and the transfer documents were processed. This timeline forms the core of their defense, as they argue the sale was completed and legally binding before the injunction existed.
Ultra Eureka Limited insists that the High Court has no grounds to grant a stay of execution, arguing that the transfer of the Dari property is already complete.
During Tuesday’s proceedings, legal counsel for the firm maintained that the property is no longer under the control of Raphael Tuju, his family, or Dari Limited, stating, “The property was sold in a public auction and transferred. When interim orders were vacated, we took possession. There is nothing to stay because the property is no longer in the hands of the plaintiffs.”
This argument serves as the primary defense against a fresh application filed by Tuju, which seeks to suspend the execution of a ruling delivered by Justice Josephine Mongare on March 9. In that decision, Justice Mongare struck out the amended plaint filed by Tuju and Dari Limited, effectively lifting the previous court orders that had prohibited the defendants from managing or selling the disputed land.
Tuju approached the court to request a stay of execution for that ruling, pending the hearing and determination of an intended appeal. The core of the current legal battle rests on whether the court can still intervene in a transaction that Ultra Eureka Limited asserts was finalized before the latest legal challenges took effect.
Ultra Eureka Limited argued in its submissions that even if the court identifies errors in the sale process, the law limits the plaintiffs to financial damages rather than the return of the property. The first defendant, Knight Frank Valuers Limited, also challenged the application, labeling the requested stay as procedurally defective. Their legal team argued that the previous court ruling constitutes a “negative order,” which, by its nature, cannot be stayed.
Representing the East African Development Bank (EADB), the second defendant asserted that the former Cabinet Secretary has not proven he will suffer substantial loss. They urged the court to allow the recovery of securities pledged against unpaid debts, stating, “Facts have not changed. The debts remain unpaid, and the plaintiffs have not shown they will suffer substantial loss. The pledged securities should be allowed to be recovered.”
In contrast, Paul Nyamodi, representing Tuju and Dari Limited, argued that the property’s unique nature makes its loss irreparable if the appeal ultimately succeeds. He warned that recovering damages from EADB could prove difficult due to immunity issues and urged the court to preserve the property to prevent an injustice.
Nyamodi also contested the valuation provided by Knight Frank, claiming it was flawed and should not dictate security deposit requirements. He noted, “Each property is unique, and if disposed of and the action by the plaintiff succeeds, he may not be able to recover the property as it will have gone beyond the jurisdiction of the court.”
Justice Moses Ado scheduled the ruling on Tuju’s stay application for May 7, 2026. In the meantime, the judge extended interim orders that prohibit any further transfer of the disputed property.
