Auctioneers are set to sell John Mtongoi's expansive 20-acre estate in Karen following his failure to meet a High Court directive to deposit KSh50 million as security in an ongoing loan disagreement with the East African Development Bank (EADB).
Garam Auctioneers announced that the Entim Sidai Wellness Sanctuary, located in Karen, Nairobi, will be auctioned on August 25, 2026. The property spans approximately 8.164 hectares and features a colonial-style main residence with nine bedrooms, a two-bedroom bungalow, staff quarters, a lawn tennis court, and other supporting structures.
Part of the land was earmarked for residential development, including 12 villas comprising five- and seven-bedroom standalone homes. The seven-bedroom villas were planned on half-acre plots, while the five-bedroom units were to occupy quarter-acre plots.
Background of the Dispute
The auction follows a May 21, 2026 High Court ruling by Judge Moses Ado, who ordered Mtongoi to deposit KSh50 million into a joint interest-bearing account held by both parties' lawyers within 30 days. This was a condition to maintain interim orders halting the property's sale amid the dispute. Additionally, Mtongoi was required to file and serve the record of appeal within 60 days, with failure to comply resulting in lifting the sale suspension.
The disagreement centers on a USD 9.3 million loan advanced by EADB in April 2015 to finance the purchase and development of commercial units in Nairobi. The matter has been litigated extensively in Kenyan and UK courts, including the High Court, Court of Appeal, and is now pending before the Supreme Court. Lower courts have consistently ruled in favor of the bank, upholding the repayment obligations.
The Court of Appeal criticized Mtongoi for clinging to technicalities to evade his contractual responsibilities.
