Kenya High Court Upholds Auction of Tuju's Entim Sidai Wellness Sanctuary

• A public auction has been scheduled for August 25 at Garam Investments Auctioneers' offices in Westlands.
• The Entim Sidai Wellness Sanctuary property is registered in the name of Dari Coffee Garden and Restaurant Limited and features a range of amenities.
• The High Court ruled that Dari Business Park had already been sold and transferred to a third party through a public auction.

This decision highlights the court's willingness to uphold public auctions of properties used as collateral in loan disputes, setting a precedent for future cases.

A public auction has been scheduled for August 25 at Garam Investments Auctioneers' offices in Westlands, where the Entim Sidai Wellness Sanctuary property will be put up for sale. The 20.2-acre property off Tree Lane in Karen is registered in the name of Dari Coffee Garden and Restaurant Limited and features a range of amenities, including a nine-bedroom colonial-style main house, a two-bedroom bungalow, staff quarters, a swimming pool, tennis court, and partially developed residential villas. This auction comes after the High Court's decision to uphold the sale of Tuju's Dari Business Park in May, which was transferred to a third party through a public auction. The Entim Sidai property had been temporarily halted from being sold due to a dispute over loans raised from the East African Development Bank, with Tuju's Karen properties used as collateral.

In May, the High Court ruled that Dari Business Park had already been sold and transferred to a third party through a public auction, extinguishing Tuju's right of redemption under the Land Act. The court found that Entim Sidai had not yet been sold and could therefore be preserved pending an intended appeal, subject to a security deposit of Sh50 million being deposited within 30 days. This decision highlights the court's willingness to uphold public auctions of properties used as collateral in loan disputes, setting a precedent for future cases. The row stems from a long-standing dispute over loans raised from the East African Development Bank.

The auction of Entim Sidai Wellness Sanctuary is significant not only because of its value but also due to the precedent set by the High Court's ruling. The court's decision demonstrates a willingness to uphold public auctions of properties used as collateral in loan disputes, which may have implications for property owners and lenders alike. This case serves as a reminder that courts will enforce contracts and auction off properties if necessary, even if it means preserving the rights of third parties. Lawyers should take note of this precedent, as it may influence future cases involving property sales and auctions.

Lawyers should watch for the precedent set by this case, as it demonstrates the court's willingness to uphold public auctions of properties used as collateral in loan disputes.

Source: Original reporting via Capital FM