Entim Sidai Wellness Sanctuary in Karen is set for auction. Garam Investments Auctioneers announced the sale for August 25 as the East African Development Bank seeks to recover a Sh4.5 billion debt.
The property developed with an old style but well maintained spacious colonial house sits on about 20 acres. It includes resort style amenities and a wellness sanctuary with a clinic, massage parlour, restaurant and conference facilities.
The latest auction comes after the High Court upheld the sale of Tuju’s other properties. Tamarind Karen and Dari Business Park were transferred to buyer Jackson Kiplimo Chebett in 2024.
Mr Tuju used Entim Sidai alongside the other properties as collateral for a $9.3 million loan advanced to Dari Limited by the regional bank in April 2015. The outstanding debt has grown to approximately Sh4.5 billion with accumulated interest, penalties and charges.
The court in May temporarily suspended the sale of Entim Sidai on condition that Mr Tuju deposited Sh50 million within 30 days and filed an appeal within 60 days. Failure to meet these conditions would discharge the stay order.
The property was originally a 94 year old Victorian bungalow on which Mr Tuju planned to build retirement homes. The loan included a second tranche of Sh294 million for construction of maisonettes. Disputes arose over whether conditions for the second drawdown were met.
Mr Tuju has maintained that the bank breached the agreement by failing to advance the second tranche. The lender has countered that conditions such as architects certificates and additional security were not fulfilled.
The case highlights risks in large property backed loans within Kenya’s prime real estate market. Karen remains a high value area attractive for residential and commercial developments. Auction processes often follow prolonged legal battles when borrowers default.
The bank sold Tamarind Karen and Dari Business Park to Ultra Eureka Limited for Sh450 million in 2024. The buyer later charged the title to Kenya Commercial Bank for a $2.5 million loan.
Entim Sidai combines an expansive colonial residence with purpose built wellness facilities. Its auction notice describes it as a well maintained estate with nine ensuite bedrooms.
Property disputes involving high value assets in areas like Karen frequently involve complex legal and financial arrangements. Such cases draw attention from developers and investors monitoring the market for opportunities.
Mr Tuju has faced previous threats to his life. The current debt recovery process adds another layer to the long running financial and legal challenges surrounding his properties.
The auction notice provides details on the property’s features. It sits on 20.2 acres and was intended for retirement villas and related development.
The East African Development Bank has pursued recovery through the courts after the 2015 facility default. The matter has involved multiple hearings and interim orders.
Karen properties continue to attract interest from buyers seeking premium locations. The outcome of the August 25 auction will depend on bidding interest and any last minute legal interventions.
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