Former Cabinet Secretary Raphael Tuju loses his prized 6.9-acre luxury property in Karen after it’s auctioned for Sh450 million amid an ongoing legal battle with the East African Development Bank.
The high-end Dari Coffee and Garden Restaurant, owned by former Cabinet Secretary Raphael Tuju, was sold at auction on October 1 for Sh450 million, according to The Standard. This prestigious property, located in Nairobi’s upscale Karen neighborhood, spans 6.9 acres and was a go-to destination for luxury events and fine dining, thanks to its immaculate gardens and spacious event spaces. Despite its former success, Tuju lost the property as part of a larger legal battle.
Garam Auctioneers conducted the sale, drawing significant interest from potential buyers eager to claim a piece of the renowned establishment. “The property was successfully auctioned for Sh450 million on October 1, 2024,” revealed a source familiar with the transaction. The new owner’s identity remains unknown, and it is unclear if Tuju will take further legal action to contest the sale. Alongside this loss, Tuju is also fighting to retain another significant asset, the Garden Restaurant and Entim Sidai.
The legal disputes Tuju faces trace back to 2015 when the East African Development Bank (EADB) loaned him $9.3 million for the purchase of a 20-acre plot for housing and hospitality ventures. The bank claims Tuju defaulted on the loan, leading to protracted court battles.
Tuju, however, argues that the bank has blocked multiple settlement offers and insists that his properties, currently valued at Sh4.2 billion, far exceed the bank’s demands. The legal wrangling, including a Supreme Court case, revolves around a UK judgment that found Tuju in breach of the loan agreement, as well as a case he has brought against the bank in the High Court.