Court Rules Tuju’s Dari Business Park Sale Cannot Be Reversed

Former Cabinet Secretary Raphael Tuju has suffered a setback after the High Court ruled that the sale of his Dari Business Park property in Karen cannot be cancelled because it had already been sold through a public auction.

The court however, gave Tuju temporary relief by stopping any action against another property, Entim Sidai Wellness Sanctuary, until his appeal case is heard and determined by the Court of Appeal within 60 days.

According to the ruling delivered on Thursday, Tuju must deposit Ksh. 50 million within 30 days as security. The money will be placed in a joint interest-earning account managed by lawyers representing both parties. The court warned that if the amount is not deposited within the set period, the stay orders will automatically end.

Tuju had moved to court seeking to stop the implementation of an earlier ruling that cleared the way for the sale of two Karen properties linked to a disputed Ksh.2 billion debt owed to the East African Development Bank.

High Court Judge Moses Otieno ruled that the court could not issue stay orders for Dari Business Park because the property had already changed ownership after being sold at a public auction.

The judge stated that the property had already been transferred to Ultra Eureka Limited and possession had also been taken by the new owner.

Justice Otieno explained that once a property is sold through a legal auction process, the original owner loses the right to reclaim it. He added that the law only allows compensation through damages if the person feels aggrieved.

The court also referred to previous legal decisions, which confirmed that completed sales cannot be reversed through court injunctions.

However, the judge allowed Tuju to challenge the earlier ruling delivered on March 9 by appealing at the Court of Appeal.

In that earlier judgment, Lady Justice Josephine Mongare ruled that Tuju’s application was an abuse of the court process and was aimed at delaying the bank from recovering the debt after years of legal battles.

She said the former CS was attempting to reopen matters that had already been decided by different courts and through international processes.

The court further noted that the Ksh.50 million security was important to ensure the appeal process is not used to delay justice or frustrate debt recovery efforts.

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