Judiciary warns Tuju over public comments on court battle with EADB

The Judiciary has warned former Cabinet minister Raphael Tuju over media statements regarding his ongoing court case with the East African Development Bank (EADB) over a Ksh.1.2 billion loan dispute.

In a Monday interview with local broadcaster Spice FM, Tuju alleged a lack of fairness by the five Supreme Court Judges in the protracted dispute over the loan to his company, Dari Limited, which also involves a 27-acre piece of land in Nairobi’s Karen area.

The former minister claimed his evidence against EADB was thrown into doubt after the bank submitted his defence stole confidential papers from its Kampala offices.

Judiciary Spokesperson Paul Ndemo on Thursday warned Tuju that the matter is before the courts and the Judicial Service Commission (JSC) and as such, the sub judice rule applies.

The rule restricts public commentary and disclosure related to ongoing court proceedings to prevent prejudging the issue, influencing the court, or obstructing justice.

“We urge all parties to refrain from litigating their cases through the media or social media platforms. We also call on the media to verify facts before reporting on such matters to avoid contributing to misinformation or disinformation,” Ndemo said in a statement.

EADB, on its part, maintained that all its operations are lawful and comply with governance principles that guide banking operations across its four member states.

“All loan facilities advanced by the bank to its customers are subjected to rigorous processes across the board without favouritism to individuals or institutions based on rank or profile,” the lender said in a separate statement.

The bank refused to comment on the court case but said it remains confident the facts it presented in court will prevail.

Tuju claims he borrowed the sum from the lender for a project – Ksh.900 million for buying the land and Ksh.300 million for developing the project.

But he accuses the bank of paying only Ksh.900 million to the land seller, not releasing the rest, and then demanding repayment for the full loan.

The case began at a U.K. court when EADB lodged proceedings in the High Court of Justice, Business and Property Courts of England and Wales.

In June 2019, the court delivered a judgment in favour of EADB, ordering Dari Limited and its guarantors to pay money claimed by the lender.

Consequently, EADB applied to Kenya’s High Court for recognition and enforcement of the U.K. court ruling.

In January 2020, the High Court granted the application, recognising and registering the U.K. judgment as a Kenyan judgment, thereby enabling its enforcement in Kenya.

Dari Limited tried to set aside this recognition, but the High Court dismissed the efforts in February 2020.

Tuju’s company appealed the High Court’s decisions to the Court of Appeal, but in April 2023, the court threw out the appeal.

Dari Limited would thereafter file an appeal before the Supreme Court, seeking to challenge the decisions of the lower courts.

The company also lodged a complaint with JSC, alleging bias on the part of the bench hearing the matter. In light of the seriousness of the allegations, the Supreme Court bench recused itself from hearing the appeal.

The Court of Appeal judgment remains in force.

Separately, in September 2024, Dari Limited filed an application before the High Court to stop the auction of properties subject to the dispute.

However, the High Court the same month dismissed the application.

The latest developments come less than a week after Tuju wrote to Chief Justice Martha Koome, citing grave concerns regarding the conduct of five Supreme Court Judges in executing their duties. 

In a March 21 statement, Tuju claimed the Dari Limited-EADB case had escalated into a conflict with the five judges, arguing that it is being propelled by individuals under the guise of the bank.

He accused the judges of bias.