'The truth about EADB’s auction of Tuju’s Dari property'

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The East African Development Bank (EADB) has moved to clarify reports and speculation surrounding the auction of Dari property in Nairobi, saying much of what has been circulating in public discourse is misleading.

In a statement issued from Kampala on Monday, March 16, 2026, the bank emphasized that the narrative around the property had been distorted in ways that ignored verified court rulings and the bank’s governance procedures.

How the dispute began

In 2015, Dari Limited, a company registered in Kenya, borrowed USD 9,197,084 from EADB under a loan facility agreement signed on April 10, 2015.

As security, shareholders and directors pledged several properties in Nairobi, which were legally registered in favour of the bank.

The loan was drawn on July 29, 2015, but by the second quarter of 2016, the company defaulted on repayment, ignoring multiple demand notices issued in November 2017.

“At no point, over the course of this seven-year-long dispute, has the EADB received any credible or verifiable repayment offer from the debtors as have been alleged,” the bank said in its statement.

Court rulings support EADB

Because the loan agreement specified English law, EADB filed proceedings in the High Court in England, which ruled on June 19, 2019, awarding the bank USD 15,162,320.95, covering principal, interest, and penalties.

The judgment was later recognized by Nairobi’s High Court in 2020 and confirmed by the Court of Appeal in 2023.

“The EADB remains guided by the principles of the rule of law, its governance policies, and, more importantly, by the loan facility agreement entered between itself and the borrower. There must be finality of court matters,” the statement added.

Auction of the Ngong Road property

Following the confirmed default, EADB conducted a public auction of the Ngong Road property on October 1, 2024, following all legal procedures.

There were no court orders preventing the sale at the time.

Dari Limited later challenged the valuation and obtained an interim injunction--applicable only to unsold properties.

On March 9, 2026, the High Court struck out the suit and vacated interim orders, clearing the auction.

“The Bank successfully auctioned the Ngong Road property…after following all due processes and the highest bidder purchased the property,” EADB said.

EADB distances itself from misinformation

“The EADB distances itself from the ongoing public theatre of the borrower’s distortion of facts and disinformation. All actions were carried out in line with governance policies, legal frameworks, and competent court rulings,” the statement said.