Judicial Setback for Raphael Tuju in Dari Business Park Dispute
Former Cabinet Secretary Raphael Tuju faces a significant hurdle in his efforts to overturn the sale of Dari Business Park. The Environment and Land Court has ruled that it lacks the jurisdiction to address his petition contesting both the valuation and transfer of this key Nairobi property.
Tuju, along with Dari Limited, initially challenged the sell-off of the prime property to Ultra Eureka Limited—owned by Jackson Kiplimo Chebett of Stabex International Limited—for Ksh 450 million in October 2024.
Court’s Jurisdiction Questioned
The ruling from the court clarified that although the petition posed constitutional queries and sought orders affecting the property’s registration and ownership, the core issue revolved around the lender’s adherence to statutory demands governing the sale and valuation of encumbered assets.
“The primary question relates to whether the statutory sale power was exercised in compliance with Section 97 of the Land Act,” the court stated. The judge emphasized that referencing constitutional rights did not automatically extend the court’s authority to deliberate on a case whose heart lay beyond its jurisdictional scope.
“Since this court has determined that it lacks jurisdiction, it would be inappropriate to examine the merits of claims regarding undervaluation, breach of duty, or constitutional violations. These issues belong to a court equipped to handle such cases,” the ruling asserted.
Allegations of Undervaluation
The court’s decision leaves unresolved critical issues of undervaluation and the purportedly illegitimate sale of the property. Tuju has argued that the forced sale process was based on outdated and inaccurate property valuations that grossly undervalued the asset, contravening Section 97 of the Land Act.
According to Tuju, the property’s valuation of approximately Ksh 450 million inadequately considered its existing developments, market conditions, and income-generating capabilities. He contended that Dari Business Park constitutes an active commercial entity with tenants and various businesses at risk due to the sale.
Claims Against the Bank and Auctioneers
Tuju alleged that both the East African Development Bank (EADB) and the involved auctioneers breached Articles 40, 46, and 47 of the Constitution, safeguarding property, consumer, and administrative rights. He sought a court decision declaring the auction, sale, and transfer of the property as unconstitutional and void.
He also requested annulment of the sale and transfer, alongside compensation for damages incurred due to alleged unconstitutional deprivation of property, loss of business, and unlawful sale below the legal threshold.
Loan Facility and Sale Confirmation
The dispute relating to Dari Business Park traces back to a loan facility granted to Dari Limited by EADB in April 2015. Tuju had utilized both Dari Business Park and Entim Sidai Wellness Sanctuary as collateral for a $9.3 million loan.
However, the lender later sought to recover approximately $35.05 million, about Ksh 4.5 billion, which Tuju contended exceeded the initial loan amount significantly. He criticized the bank for violating the loan agreement and disputed the valuation reports employed during the sales process.
Subsequently, EADB exercised its statutory right to sell the Dari Business Park, which comprises about 6.8 acres in Nairobi, to Ultra Eureka Limited for Ksh 450 million on October 1, 2024.
Following the acquisition, Ultra Eureka revealed that it had used the property title to secure a $2.5 million loan from Kenya Commercial Bank (KCB).
Ongoing Disputes Over Valuation
The bank has also indicated intentions to sell Entim Sidai Wellness Sanctuary to recover outstanding debts. Valuation reports referenced in the ongoing dispute indicated that both Tamarind Karen and Dari Business Park together were estimated at Ksh 590 million, with a forced-sale value of Ksh 442.5 million.
Entim Sidai Wellness Sanctuary was valued at Ksh 1.395 billion, with a forced-sale value of Ksh 1.046 billion. The reports, dated July 2025, have raised questions regarding their relevance to the October 2024 sale of Dari Business Park.
Tuju maintains that the valuation did not accurately represent the properties’ true worth or their potential for income generation, leaving critical debates unresolved in the court’s ruling.
Discussion about this post