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The Nairobian

Tuju's luxury hotel auctioned for Sh450 million amid legal battle

Business

By Brian Ngugi | Oct 14, 2024

**Former Cabinet Secretary Raphael Tuju addresses the Press at his Entim Sidai residence in Karen, Nairobi.** [File, Standard]

The luxurious Dari Coffee and Garden Restaurant, owned by former Cabinet Secretary Raphael Tuju, was auctioned on October 1 for Sh450 million, The Standard has established.

Situated in the affluent Karen suburb in Nairobi, the 6.9-acre property was a favoured venue for upscale events and fine dining, renowned for its manicured gardens and spacious conference facilities. However, Tuju has lost it in the ongoing legal battle.

The auction, conducted by Garam Auctioneers, attracted eager buyers salivating for a piece of the once-thriving establishment.

"This particular property was successfully sold on October 1, 2024, for Sh450 million,” a source with details of the sale agreement who witnessed the auction disclosed in an interview Sunday.

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The Standard could not establish the identity of the new owner.

It was not clear whether the former CS will move to court to contest the sale.

In addition to this forced sale, Tuju is fighting to protect another valuable asset: the Garden Restaurant and Entim Sidai.

The loss of the Dari property is a major setback for the former Jubilee Secretary General, who owns extensive commercial real estate in the upscale Karen estate, currently embroiled in a protracted six-year court battle.

The former Rarieda MP is fighting to retain his multibillion estate in Karen.

Tuju, who served in former President Uhuru Kenyatta's Cabinet, is embroiled in legal disputes.

The issues date back to 2015 when the East African Development Bank (EADB) granted Tuju $9.3 million for the purchase of a 20-acre parcel of land intended for housing and hospitality development. The bank claims the former CS defaulted on the loan, leading to the ongoing court case.

Tuju contends that the bank has thwarted various settlement initiatives he has proposed. He argues in court that his properties are currently valued at Sh4.2 billion, exceeding the bank's demands.

The dispute stems from a loan agreement made in 2015, with cases pending before the Supreme Court. Tuju is challenging the enforcement of a UK judgment that found he breached the agreement, while also contesting the bank’s claims in the High Court.