- The High Court in Nairobi has thrown out a case between Dari Ltd and Raphael Tuju, paving the way for the auction of two prime Karen street properties linked to a long-running debt dispute.
- Judge Josephine Mongare ruled that the issues had already been resolved in the previous case, making the matter a matter for the judge.
- This dispute stems from a loan in 2015, with many courts, including the UK, the Kenyan Court of Appeal, and the High Court, upholding the enforcement of the debt judgment.
The High Court in Nairobi has cleared the way for the auction of properties worth billions of shillings in Karen owned by a former Minister Raphael Tuju after rejecting a lawsuit that sought to prevent the sale of those properties due to a long-term debt dispute.
Source: UGC
In a ruling issued on March 9, Justice Josephine Wayua Mongare dismissed the amended case filed by Dari Limited and Tuju, allowing the lenders and auctioneers to proceed with the recovery of two major properties in Karen.
Why Raphael Tuju stares at the loss of property
The crisis stems from efforts by the East African Development Bank (EADB) and other parties to enforce the bonds attached to the credit facility following alleged defaults.
According to court papers, on October 28, 2024, Dari Ltd filed a lawsuit seeking interim orders to stop the planned auction or transfer of the two properties, LR No. 11320/3, which owns Entim Sidai Wellness Sanctuary on Tree Lane in Karen, and LR No. 1055/165, where Tamarind Karen and Dari Business The park is located along Ngong Road.
The court previously issued temporary orders to stay the case pending the hearing of the petition.
However, the move led to fresh legal challenges from banks and auctioneers who asked for the case to be dismissed, arguing that the High Court had no jurisdiction and that the issue had already been decided in previous cases.
In that decision, Justice Mongare agreed with EADB, finding that the issues raised by Dari Ltd had already been resolved in the previous case.
“After reviewing the petition and the court’s decision therein, I agree with EADB that the issues raised by the plaintiffs in this petition have already been decided and are largely being adjudicated,” he ruled.
Why did the court allow Raphael Tuju’s properties to be auctioned?
The court noted that a similar attempt to block the auction of the same properties of Karen was dismissed in early September 2024 after the court found no basis for issuing the order.
According to the judgment, the dispute stems from the loan agreement signed in April 2015.
Following the failure, the lender successfully pursued the matter in the High Court of Justice in England and Wales, which in June 2019 ordered the borrowers to pay $15,162,320.95.
The High Court of Kenya later recognized and registered the foreign judgment in 2020, allowing the bank to enforce it domestically.
The decision was later upheld by the Court of Appeal in 2023, with the High Court refusing to issue a stay order.
Judge Mongare added that many courts had already decided on the matter and that the Plaintiffs were trying to reopen issues that had been settled for a long time.
“Plaintiffs are basically asking the court to rehear the denial order that has already been denied,”
Source: UGC
Earlier, Tuju filed an official complaint with the Directorate of Criminal Investigation (DCI) against the attorney general Fred Ojiambo, accusing him of forging evidence and submitting false oaths in matters concerning the East African Development Bank.
Why Raphael Tuju reported the lawyer to DCI
He said he provided investigators with court documents and affidavits that, in his opinion, reveal criminal misconduct by Ojiambo, a senior partner at Kaplan & Stratton Advocates.
Tuju further alleged that Ojiambo and other lawyers in the firm colluded with the former Kenyan Manager of the bank to create false claims, which were then presented before the High Court by the High Court.
The politician, who has been in a long-term legal dispute with the bank regarding his Karen property of KSh 1.5 billion, said the situation has endangered his life and that of his children.
According to him, Ojiambo’s actions amount to fabrication of evidence and conspiracy to obstruct justice. Tuju Report to DCI wants Ojiambo’s charges, similar to the cases already underway against other key partners in the company.
He also criticized Kaplan & Stratton’s public image, saying that the company presents itself as an international company with a British-sounding name, despite being run by Kenyans only.
Tuju added that the case has been suspended for more than a year after Ojiambo allegedly requested “non-existent diplomatic immunity” from the East African Development Bank at the High Court.
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Source: TUKO.co.ke
