Court clears EADB to auction Tuju's Entim Sidai after Sh50m security deadline is missed
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Raphael Tuju and Dari Limited have lost a bid to stop the auction of the Entim Sidai Wellness Sanctuary in Karen, Nairobi, after the High Court found their protective order lapsed for want of a Sh50 million deposit.
Former Cabinet Secretary Raphael Tuju and Dari Limited have lost their bid to stop the auction of the Entim Sidai Wellness Sanctuary in Karen, Nairobi, after failing to meet a Sh50 million court security condition.
The High Court ruled that an order protecting the property had lapsed automatically on June 22, 2026, because the borrowers did not deposit Sh50 million in a new interest-earning joint account within 30 days of the May 21, 2026 order. The judge described the May order as self-executing and dismissed the application to block the sale.
Tuju and Dari had argued that Sh52.5 million held at NCBA Bank in the names of the parties' lawyers since 2020 satisfied the requirement. The court agreed with the East African Development Bank (EADB) that the money related to an earlier Court of Appeal case and could not be applied to the fresh deposit, calling the attempt to rely on it misconceived.
The dispute dates back to April 2015, when Dari Limited and SAM Company Limited obtained a $9.3 million (Sh1.2 billion) loan from EADB to acquire land in Karen and develop luxury residential properties for sale. Entim Sidai, Tamarind Karen and Dari Business Park were used as security, alongside personal guarantees from Tuju.
EADB obtained a 2019 English judgment for $15.16 million (Sh1.96 billion) including principal, interest and charges, and said about Sh1.9 billion remained unpaid in March 2026. In October 2024 the bank auctioned Tamarind Karen and Dari Business Park for Sh450 million to Ultra Eureka Limited, a company associated with businessman Jackson Kiplimo Chebett, which took possession and registered the properties in its name.
In their latest application, dated August 5, 2026, Tuju and Dari sought to stop the sale, cancel an August 3 auction notice, enforce the May orders and start contempt proceedings against EADB officers and Garam Investment Auctioneers. The ruling removes the protection granted in May, leaving Entim Sidai as the next property in the lender's recovery effort.