EADB Speaks on Raphael Tuju Loan Dispute, Defends Recovery Process

The East African Development Bank has issued a detailed statement addressing the long-running loan dispute involving Kenyan politician Raphael Tuju, saying it followed due legal process in recovering a loan issued to his company.

In a position statement released on Monday, the regional lender said the clarification was necessary to correct what it described as “grossly misleading” public commentary surrounding the case.

According to the bank, Dari Limited, a company linked to Tuju, borrowed USD 9,197,084 (about Sh1.2 billion) from EADB in 2015 under a facility agreement dated April 10 that year.

The loan was secured using properties owned by Tuju in Nairobi.

“The loan was drawn on July 29, 2015 after the securities were properly registered,” the bank said, adding that the borrower later defaulted on repayment obligations.

EADB said the facility went into default by the second quarter of 2016, prompting the bank to issue demand notices to the borrower in November 2017, which were not honoured.

Following the default, the lender moved to court in the United Kingdom as provided for in the loan agreement.

In June 2019, the High Court of Justice awarded the bank judgment for USD 15,162,320.95, covering the principal, interest and penalties.

Subsequently, the bank sought recognition of the judgment in Kenya.

The High Court of Kenya registered the foreign judgment against Dari Limited in February 2020, a decision later upheld by the Court of Appeal of Kenya in April 2023.

EADB said after exhausting legal avenues, it exercised its statutory right as chargee to sell the charged property through a public auction conducted on October 1, 2024.

“The bank successfully auctioned the Ngong Road property that had been pledged as security, and the highest bidder purchased the property,” the statement said.

However, the bank noted that Dari Limited later filed a fresh court application challenging the valuation of the property.

While an interim injunction was issued earlier, the High Court in Nairobi on March 9, 2026 struck out the suit, effectively lifting the orders that had halted the process.

EADB said it remains guided by the rule of law and insisted that the loan agreement signed between the parties must be respected.

“The bank distances itself from the ongoing public distortion of facts and disinformation. There must be finality of court matters,” it said.