Tuju auction case: Judiciary urges restraint as appeal begins

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NAIROBI — Kenya’s Judiciary has urged all parties in the dispute between Raphael Tuju and lenders seeking to auction his company’s properties to exercise restraint, as the case moves to the Court of Appeal of Kenya.

The caution follows a High Court ruling that cleared auctioneers--including Garam Investment Auctioneers--to proceed with the sale of properties owned by Dari Limited in a bid to recover a debt of more than $15 million (about Sh2 billion).

In a statement on Wednesday, Judiciary spokesperson Paul Ndemo warned against actions or public commentary that could interfere with the appeal now before court.

“We urge all parties to exercise restraint and allow the appellate court to determine the matter,” the statement said.

How the dispute reached this point

The case stems from a long-running loan dispute involving Dari Limited and the East African Development Bank (EADB), alongside other associated parties.

According to court records, the lenders moved to recover the debt after default, triggering efforts to realise securities — in this case, high-value properties linked to the company.

A key turning point came in 2019, when a court in England and Wales issued a final judgment requiring repayment of the debt.

That decision was:

• recognised by the Kenyan High Court in 2020
• upheld by the Court of Appeal of Kenya in 2023
• left standing after the Supreme Court of Kenya declined to halt enforcement

Why the High Court dismissed the latest case

Mr Tuju and his co-applicants had returned to court seeking to stop the auction. The court initially issued temporary orders preserving the properties.

However, after hearing both sides, the High Court struck out the case.

It found that: 

• the issues raised had already been fully determined by competent courts
• a similar attempt to stop the auction had been dismissed earlier in 2024
• reintroducing the same claims--even in a different form--was not allowed

The court ruled the application was “res judicata”, meaning the matter had already been decided and could not be reopened. It also described the move as an abuse of the court process.

As a result, the court lifted all earlier orders that had stopped the sale, effectively allowing the lenders to proceed with the auction.

What happens next

Mr Tuju and the other applicants have now filed an appeal at the Court of Appeal, shifting the battle to the next legal stage.

With the matter now active before a higher court, the Judiciary has cautioned against public debate that could undermine the process.

For now, the focus shifts to the appellate judges, who will determine whether there are grounds to revisit a dispute that has already passed through multiple courts in Kenya and abroad.