Court strikes out Tuju's case opposing properties transfer to Ultra Eureka in Sh1.9B row with EADB

The Commercial Court in Nairobi has cleared the path for the East Africa Development Bank (EADB) to transfer its Karen properties to a new owner to recoup Sh1.9 billion. Justice Wayua Mong’are, in her ruling, said that the case against EADB, real estate company Knight Frank Valuers Limited and Garam Investment Auctioneers was inviting the court to re-determine issues that had already been previously resolved by different courts. She upheld the bank’s position that the fresh case could not be heard as it amounted to re-opening the battle found in the United Kingdom and Kenya.

“I find that the Bank’s position and objection are well-founded, that this application is a blatant abuse of court process, meant to frustrate its lawful recovery efforts after years of default and litigation. There is no way that the plaintiff’s amended plaint dated April 25, 2025, survives, and the same is accordingly struck out,” ruled Justice Mong’are.

In this case, Tuju accused the lender, the auctioneer and the valuer of violating court orders. He told the court that the bank had already sought transfer of the titles of Entim Sidai Wellness Sanctuary, Tamarind Karen and Dari Business Park to Ultra Eureka Limited.

 He claimed that the auction violated court orders barring EADB from selling the high-end property in a bid to recover a contested Sh1.9 billion.

The former Jubilee Party Secretary General filed two separate cases against the registrar. In the first, he sued the Chief Land Registrar of Nairobi and the Ministry of Lands, Cabinet Secretary.

“It will manifest an unfair administrative action if the respondent proceeds and executes a transfer in favour of a third party while having been served with a valid court order,” his court papers filed before the commercial court in Nairobi read in part.

Tuju alleged that Jackson Kiplimo Chebett is the director of Ultra Eureka. He added that Kiplimo is also the director of Stabex International Limited, which is allegedly linked to Ultra-Eureka Farm Limited.

Tuju claimed that he had informed the Ministry of Lands about the court order.

He then filed a second case, this time arguing that Ultra Eureka had informed his tenants that it was the new sheriff.

“Despite full notice of the court orders, which were presented for registration at the Lands

Registry, the plaintiffs have discovered that the Defendants deliberately refused to comply

with the said orders, instead proceeding to illegally and irregularly register a transfer by

Chargee in favour of the first defendant purportedly on February 18, 2025,” his lawyer Victor Mabachi argued.

According to Tuju, Justice Wayua Mong’are had issued orders barring Garam, Knight Frank Valuers and the regional bank disposing of the property dubbed Entim Sidai Wellness Sanctuary and Tamarind Karen and Dari Business Park.

“ The said orders preserve the status quo and prevent any further dealings with the subject properties pending the hearing of the plaintiff’s application dated October 25, 2024, which remains undermined,” said Tuju.

He asserted that the orders were extended on October 20, 2024, and subsequently on February 6, 2025.

Tuju stated that the order to bring the transfer was booked for registration on November 29, 2024. According to him,  the title at the time had not been converted to a new register.

He stated that his lawyers then wrote to the ministry asking that the registration be done manually. He also asked that the deed file be kept under the custody of the Chief Land Registrar to prevent dealings.

Tuju lamented that his lawyers were verbally informed that the orders could not be complied with as they were not against the registrar.

He said, notwithstanding the orders, Ultra Eureka lawyers A. E. Kiprono had claimed ownership of the land, arguing it had been transferred to them after an alleged purchase during the auction on October 1, 2024.
“The plaintiff is aware that no auction took place on October 1, 2024, and any purported purchase by the 5th defendant through a process conducted by the second defendant at the behest of the first defendant is fraudulent and irregular,” he said.

According to Tuju, the alleged auction was orchestrated by the bank officials. He claimed that he had reported the same at Karen Police Station.

He stated that persons from Ultra Eureka, accompanied by a Directorate of Criminal Investigations (DCI), attempted to invade the property on January 21, 2025, claiming ownership but were unsuccessful.

He stated that on March 4, 2025, he discovered that the title to the property had been converted in favour of Ultra Eureka.

He said that his lawyers had written to the registrar informing him that it violated court orders.

“ No response has been received to the said letter, nor have the registration applications been registered or rejected,” said Tuju.

The politician asked the court to intervene and quash the alleged sale.

On the other hand, EABD and Garam asked the court to strike out the case.  They argued that the court had no power to entertain the case. In the alternative, they asked the court to find that it was vexatious and an abuse of court process.

The case is a culmination of a series of titanic battles as Tuju sought to salvage his properties, while EADB asked the court to hand it a pound of flesh, close to Tuju’s business’s heart. The long-standing battle also sucked in Supreme Court Judges, with Tuju accusing them of failing to hear his case against the bank. He sought to have Chief Justice Martha Koome, her deputy Philomena Mwilu, and Justices Mohamed Ibrahim, Smokin Wanjala, Njoki Ndung’u, Isaac Lenaola, and William Ouko removed from office. However, they all moved to the High Court to challenge the same.

It all started in the United Kingdom, where he lost in two instances, in the trial and the appeal. The bank then asked the Kenyan court to adopt and recognise the United Kingdom judgment in favour of EADB for enforcement.

On his end, Tuju sought to convince the court that EADB reneged on an agreement to advance Dari Sh1.19 billion and fight off a UK judgment that had been adopted by the court in Kenya.

He claimed that the lender only advanced him around Sh800 million to acquire the 20-acre Tree Lane Property to expand his hospitality business at Dari in Karen Estate, Nairobi.

Tuju argued that the bank refused to advance Dari the money, which frustrated all his efforts to resolve this issue amicably.

While poking holes in the judgment, he argued that the UK verdict could not stand as Justice Daniel Toledano and EADB’s lawyer Michael Sullivan are both members of One Essex Court Chambers, a commercial law firm in the UK.

While denying the allegations, EADB lawyers- Githu Muigai, Michael Sullivan, and former Uganda Solicitor General Peter Kabatsi argued that the politician had lost the battle in the UK, first before the High Court and on appeal.

EADB asserted that Tuju was offered a loan and should have honored his debt obligations.