Former Cabinet Secretary Raphael Tuju and Dari Limited’s petition to overturn the sale of the Nairobi‑based Dari Business Park to Ultra Eureka Limited was rejected by the Environment and Land Court.
The court held that the central issue was whether the lender complied with statutory requirements for the valuation and sale of charged property, not constitutional questions raised by the petition.
Citing Section 97 of the Land Act, the judge noted that the court’s lack of jurisdiction precluded it from examining allegations of undervaluation, breach of statutory duty or violations of constitutional rights.
Tuju’s claims that the Sh450 million sale was based on outdated and inaccurate desktop reports, ignoring the property’s developments, rental income and market conditions, remain unresolved.
He also alleged that the East African Development Bank (EADB) and the auctioneers violated his constitutional rights to property, consumer protection and fair administrative action, seeking to have the transaction declared void and to obtain damages.
The dispute originates from a US$9.3 million loan advanced by EADB to Dari Ltd in April 2015, secured against the business park and the Entim Sidai Wellness Sanctuary, with the bank later seeking to recover about US$35.05 million (approximately Sh4.5 billion).
EADB exercised its statutory power of sale and disposed of the 6.8‑acre Dari Business Park for Sh450 million to Ultra Eureka, which subsequently charged the title to Kenya Commercial Bank to secure a US$2.5 million loan.
EADB is also pursuing the sale of the Entim Sidai Wellness Sanctuary to recover the outstanding debt, indicating that the broader loan recovery process continues despite the court’s dismissal of Tuju’s petition.
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