Woes facing former Cabinet Secretary Raphael Tuju seem far from over after auctioneers put up for sale the Entim Sidai wellness sanctuary in Karen over a defaulted Sh4.5 billion loan.
The particular property is set to go under the hammer on October 29. Auctioneers had placed an earlier advertisement in one of the local dailies indicating their intention to sell the properties Tuju's prime properties being Dari Coffee and Garden restaurant and Entim Sidai.
The properties were to go under the hammer on October 1, but Tuju hurriedly moved to court under a certificate of urgency to stop the sale. Tuju claimed that the East African Development Bank, which is claiming the billions, unlawfully issued notifications of sale.
He said the sale was unconstitutional as it sought to deprive him of his properties. But his application was opposed by the bank, saying the Supreme Court allowed them to proceed with the recovery proceedings.
"The Supreme Court confirmed that we are a reputable international financial institution, and we would be able to repay the applicants should their appeal succeed," said the bank.
Judge Njoki Mwangi, after hearing from both parties, dismissed Tuju's application and declined to grant the orders, saying "the balance of convenience tilts in favour of the bank, which should recoup the facility it advanced Dari Limited," this decision was issued on September 30.
What followed after this decision was another ad being placed in one of the local dailies on October 7, this time only listing Entim Sidai.
"Under instructions received from the chargee's advocates, we shall sell by public auction the prime hotel, Entim Sidai which sits on 20.2 acres,"
The sale will commence at 11 am at Garam Investments offices in Westlands.
The suit arises out of a Sh1.5 billion loan, which Tuju defaulted on.
It was granted to him by the East Africa Development Bank. His children acted as guarantors for the said loan.
The loans were meant for the construction of 12 two-storey bungalows, each worth Sh100 million. The estate was to sit on a 20-acre forested land named Entim Sidai.
The matter has spiralled all the way to the Supreme as the money owed to the bank continues to accrue interest.