Economy
Nginyo Kariuki’s daughter, son in Sh4bn estate row
Friday May 28 2021
The late Lawrence Nginyo Kariuki. FILE PHOTO | NMG
Summary
- James Anthony Kariuki and his sister Jane Wambui are now battling in court over control of bank accounts, rent and homes.
- Ms Wambui has opposed her elder brother’s court petition seeking authority to manage the estate, pending the conclusion of the succession fights.
- The senior Kariuki died on February 24 last year, leaving behind a contested Will, a widow (Margaret Wangari Nginyo) and nine children, including three from two other women.
The fight for control of Sh4 billion estate belonging to the late businessman and politician Lawrence Nginyo Kariuki has morphed into a spat between the eldest son and his sister with the siblings trading accusations against each other.
James Anthony Kariuki and his sister Jane Wambui are now battling in court over control of bank accounts, rent and homes.
Ms Wambui has opposed her elder brother’s court petition seeking authority to manage the estate, pending the conclusion of the succession fights.
The senior Kariuki died on February 24 last year, leaving behind a contested Will, a widow (Margaret Wangari Nginyo) and nine children, including three from two other women.
The battle between James and Ms Wambui has exposed little secrets in the family, including gifts and home responsibilities that the tycoon shouldered on behalf of his adult children such as fees and salaries payment.
The latest rift in the succession battle erupted in Margaret’s household that had previously put up a united front against the claims resulting from the children born out of wedlock – Brenda Nyambura Kiragu, Alex Ndoria Karuri and Austine Wachira Karungo.
In the latest filing, James wants all rent proceeds from properties belonging to his late dad deposited directly to Mr Nginyo’s bank accounts, saying they belong to the estate.
He has cited properties, about which he says rent is not paid or if there is payment, the money goes to third parties who are not authorised.
“There is no property registered in the name of Lawrence Nginyo Kariuki where rent is not being paid,” Ms Wambui said, adding that all the properties are well maintained and there is no risk of disrepair or wastage as alleged by James.
She also wants her brother to account for the house he occupies and monies allegedly loaned to him by their later father.
But in reply, James says he was gifted the property by his father on his wedding day, and claims all family members are aware.
James denies owing Nginyo Investments Sh21 million and says the millions of shillings are part pay for the 25 years he has worked in the family business.
He said the sister’s claims were motivated by the displeasure on the part of Ms Wambui that his father, being a traditional African gentleman, felt uncomfortable paying her children’s school fees yet she is married to a Nairobi top lawyer.
James says that there was discomfort in the family over Ms Wambui and her family staying in the tycoon’s property without paying rent.
He told the court that his siblings Silas Macharia Kariuki, Scholastica Njeri Kariuki and Jane Wambui Kariuki have liquidated a total of Sh71 million in fixed deposit accounts of Pema Holdings Limited at I&M Bank.
They transferred the cash in two transactions to a current account they control and without the knowledge of James, court documents show.
“Without the knowledge of my mother or having misled her, [they] transferred Sh10 million and later Sh61 million into an account at I&M Bank without my knowledge and without valid company resolutions,” said James in court papers.
Her sister, Ms Wambui, dismissed him in court papers, saying her father dropped James as a signatory.
“Since 18th February 2008, the applicant was removed as a signatory to all company accounts by the deceased as noted in the bank mandate letter,” said Ms Wambui.
Mr Kariuki had a total of Sh335 million in fixed deposit accounts, with most of the cash at Consolidated Bank of Kenya.
Cash in his other savings accounts, including at Equity and Habib Bank, have not been disclosed.
His vast estate, including real estate, farming, bank deposits and government bonds, had little debts.
The estate is the subject of an inheritance court fight triggered by a woman claiming to be a widow of the late politician and three other children born out of wedlock – Brenda, Alex and Austin — who were all excluded from the Will.
Brenda, through court, pushed for extraction of DNA before Nginyo’s burial that proved the politician was her father.
James reckons that his father’s wish for him to lead the family business was defied after the deceased’s eldest child, Jane, started giving roles to other siblings.
Mr Kariuki’s widow, Margaret, and four of her children –James, Scholastica, Jane and Silas – had earlier sought permission to run the deceased’s estate as trustees and executors, triggering court fights.
James told the court that the prolonged succession battle could lead to the deceased estate going to waste.
He has taken the stance that the rights of all children, including those born out of wedlock, should be honoured.
Kariuki was more successful in business than in politics, amassing a fortune that places his heirs among the richest families in the country.
Court documents show he owned land and buildings in Nairobi, Kiambu and Ngong valued at Sh3.2 billion. His most famous property is Nginyo Towers in Nairobi’s central business district.
He owned a 120-acre farmland in Tigoni, Kiambu, in which he grew coffee and tea and kept livestock. His investment firms, including Nginyo Investments and Pema Holdings, have assets of Sh221.3 million. He had also invested Sh84.1 million in government bonds, generating an annual interest income of Sh9.4 million.
He owned several luxury cars and farm machinery valued at Sh33.1 million, including a Toyota Landcruiser and Mercedes Benz.
Kariuki’s estate has minimal debt and has significant liquidity, with cash and cash equivalents representing about 10.5 percent of the total assets.
