Kenyan Court Rules Against Tuju in Entim Sidai Auction Case

The High Court has ruled that an order protecting Entim Sidai Wellness Sanctuary in Karen, Nairobi, automatically lapsed on June 22, 2026, because Tuju and Dari Limited did not deposit Sh50 million in a new interest-earning joint account within 30 days. The court had ordered the deposit as a condition to preserve the property pending an intended appeal.

The dispute centred on Sh52.5 million held in a joint account at NCBA Bank in the names of the parties' lawyers, deposited in 2020 under an earlier Court of Appeal proceeding. However, the court agreed with East African Development Bank (EADB) that the funds related to a separate case and could not be used to satisfy the fresh deposit ordered by the court.

The origin of the dispute between Tuju and EADB dates back to April 2015, when Dari Limited and SAM Company Limited obtained a $9.3 million (Sh1.2 billion) loan from the regional lender to acquire land in Karen and develop luxury residential properties for sale. Entim Sidai, Tamarind Karen and Dari Business Park were used to secure the loan, alongside personal guarantees from Tuju.

EADB obtained a 2019 English judgment for $15.16 million (Sh1.96 billion), including principal, interest and charges. The bank said about Sh1.9 billion remained unpaid in March 2026; Tuju disputes its account and handling of the facility. In October 2024, EADB auctioned Mr Tuju's Tamarind Karen and Dari Business Park, selling the properties for Sh450 million to Ultra Eureka Limited.

Tuju and Dari Limited had sought to stop the auction and have the August 3 auction notice cancelled. They also asked the court to enforce its May 21 orders protecting the property and initiate contempt proceedings against officers of East African Development Bank and Garam Investment Auctioneers for allegedly disobeying them.

The court's decision removes the protection granted in May against the sale of Entim Sidai, making it the next major property targeted in EADB's recovery efforts. Tuju's lawyers had argued that Sh52.5 million was held in an NCBA account, jointly operated by V.A. Nyamodi & Co. and Mohammed Muigai LLP, but EADB disputed that position.

The judge called the May order "self-executing" and Mr Tuju's reliance on the earlier deposit "misconceived". The ruling allows EADB to proceed with the auction of Entim Sidai Wellness Sanctuary.

Key points

• The court ruled that Sh52.5 million held in another account under an earlier Court of Appeal case could not be used to protect the property.
• Tuju and Dari Limited failed to deposit Sh50 million in a new interest-earning joint account within 30 days.
• The auction of Entim Sidai Wellness Sanctuary can now proceed after the court lifted the protection order.