In the years leading up to 2026, Raphael Tuju was embroiled in a protracted legal battle with the East African Development Bank (EADB) over a loan agreement initiated in April 2015. The expectation was that Tuju would resolve the matter amicably, especially after the loan amount of $9.3 million was secured against his properties and personal guarantees from him and his children.
However, the situation shifted dramatically when EADB began issuing demand letters for repayment on November 27, 2017. The decisive moment came on June 19, 2019, when the High Court in the UK ruled in favor of EADB, awarding them $15,162,320.95. This judgment was subsequently recognized by Kenyan courts on January 7, 2020, further complicating Tuju’s financial obligations.
As of 2026, Tuju’s debt to EADB is estimated to exceed Sh4.5 billion. The bank’s appointment of receiver managers in April 2023 marked a significant escalation, although they were denied access to Tuju’s properties. The auction of Dari Coffee and Garden Restaurant for Sh450 million on October 1, 2024, highlighted the financial strain Tuju faced.
In March 2026, Tuju was fined Sh100,000 for contempt of court, reflecting the ongoing legal pressures. The court also struck out an application by the Directorate of Criminal Investigations (DCI) to search Tuju’s home for CCTV footage, with Principal Magistrate Daisy Mutai stating that the DCI’s application failed to disclose a clear offence against Tuju.
Tuju has maintained that the loan agreement was structured in two phases, intended for both land acquisition and construction. He argued that the failure to disburse the remaining balance of $102,916 and an additional Sh294 million led to cash flow challenges, exacerbating his financial difficulties.
Legal experts suggest that the ramifications of the court’s decisions will continue to impact Tuju’s business operations and personal finances. The High Court emphasized that it would not allow a collateral attack on a final and valid foreign judgment, underscoring the challenges Tuju faces in overturning the ruling.
The ongoing saga illustrates the intersection of commercial disputes and legal accountability, as Tuju navigates the complexities of his financial obligations and the legal system. As the situation develops, the implications for Tuju, EADB, and the broader business community in Nairobi remain significant.
