Ksh284 million missing, as court rules on ‘who gets what’ of Mbiyu Koinange’s multi-billion estate

By , K24 Digital
On Fri, 8 May, 2020 16:06 | 8 mins read
Peter Mbiyu Koinange died on September 3, 1981. [PHOTO | FILE]
Peter Mbiyu Koinange died on September 3, 1981. [PHOTO | FILE]
Peter Mbiyu Koinange died on September 3, 1981. [PHOTO | FILE]

After dragging for 38 years at the corridors of justice, a case on how the wealth of the Late Peter Mbiyu Koinange will be shared among his two widows, children and grandchildren, has finally been settled.

The late politician-cum-cabinet minister, who served in the governments of Mzee Jomo Kenyatta and Daniel Moi, left behind a vast estate running into billions of shillings.

Immediately after his death on September 3, 1981, his widows and children went to court seeking intervention on how the Late Koinange’s wealth will be shared among them.

Koinange did not leave behind a Will, prompting High Court judge Aggrey Muchelule, while issuing his ruling on the succession matter, to offer advice to Kenyans.

“One wishes that all Kenyans can get into the habit of planning their lives, and especially about what will happen to their families and properties upon their death, it is not too much to ask that the planning be by way of writing Wills,” advised Muchelule in his ruling dated May 7, 2020.

Koinange, a veteran politician and businessman from Kiambu, was in a polygamous marriage, and by the time of his death, he had been in four unions.

His first wife, Loise Njeri, with whom he had five children with, died in 1966. His second wife, Rith Damaris Wambui, with whom he also shared five children with, died in 2010. His other two widows – Margaret Njeri Mbiyu (third wife) and Eddah Wanjiru Mbiyu (fourth wife) – are still alive. Koinange did not sire any children with Margaret or Eddah.

And 38 years after he died, his widows, children and grandchildren have been embroiled in unending property row that saw Justice Muchelule offer an explanation, in his ruling, as to why the case took nearly four decades to settle.

“This succession dispute has been one of the longest running in the judiciary, and a reference point whenever delay in the administration of justice is discussed. What is not appreciated, is that most of the cases involving rich polygamous Kenyans who die intestate have followed a similar pattern: lengthy and complicated litigation attracting many advocates, and less intention on the part of the parties to bring the matter to an end,” explained the judge.

Koinange was a shrewd businessman who left behind an estate whose net worth is estimated to be Ksh14 billion.

And with culture, hierarchy -- in terms of family order --, gender and marital statuses of the beneficiaries being the bone of contention on who gets what, where and why, the case had to go to court. Furthermore, Koinange did not leave behind an extensive Will.

Some of the properties owned by the Late Koinange include: 4, 292-acre Muthera Farm in Mau Narok, 645-acre Ethothia Farm, 198-acre Waehothia Farm in Limuru, Closeburn Estate, 98-acre land in Kiambaa, 0.88-hectare land at Industrial Area in Nairobi, 13-acre Ikinu Farm, 16-acre Githunguri land, 1.2-hectare Gichiku land, 0.22 acres of land at Karuri, plots at Banana Hill, Gathanga, Kiambaa Kawaida and Thimbigua areas.

The deceased also had shares in several companies, including Koinange Investment and Development Limited (32, 000), Koiri Limited (948, 480), Kenyatta Trading Company Limited (508), Limuru Dairy Limited, Centum Limited, Danson Macharia Saw Mills Limited, Gatatha Farmers Company Limited, BAT Kenya Limited, Oceanic Hotel Limited, KCC Limited, Horticultural Cooperative Union Limited, Kenya Grain Growers Cooperative Union Limited, among others.

The ex-minister also left behind Ksh284 million, which was raised after the sale of 394 acres of his 640-acre Closeburn Estate land to Aga Khan Group (291 acres), Centum Limited (100 acres) and Karura Community Chapel (3 acres). The money (Ksh284 million) was part of a balance-settlement following the sale of the lands. The court had allowed the parties to put on sale part of the Closeburn Estate property, and the proceeds distributed to beneficiaries and their advocates.

The balance (Ksh284 million) owed by Aga Khan Group, Centum and Karura was deposited in a joint bank account that was opened under the names of four lawyers representing the succession dispute parties.

On July 26, 2011 all parties entered a consent that the balance of Ksh284 million be deposited into a joint account operated by advocate Beatrice Kariuki representing the third house, advocate Alice Muthoni Wahome representing the fourth house, advocate Justry Nyaberi representing the first and second houses and advocate Evans Monari, revealed Muchelule in his ruling.

“The money was to be held by counsel, and not to be disbursed without the authority of the court after determining or making reservation for the creditors’ claims. The advocates opened a joint account at Eco Bank into which the money was deposited,” said Justice Muchelule.

“However, the money is no longer available at Eco Bank. The advocates, according to their affidavits, withdrew the money, shared some of it to some of the beneficiaries and applied the balance to cover their fees and fees of other advocates, and other creditors. The record is clear that no order was made authorizing the withdrawal of the money, or any part of it.

“The advocates swore affidavits to say that there was ruling by Justice Leonard Njagi that directed that all outstanding debts of the estate be paid from the monies. They said they were unable to trace the ruling in the file. I wonder, on what basis Eco Bank released the money to the advocates. Did the bank see any order of the court authorizing the release?

“I am sure if there was any order of the court authorizing withdrawal, it would have been produced. That is all I would like to say about the money. This is because the advocates are challenging the proposal to prosecute them in relation to the money at the Constitutional Court in Nairobi. For the purposes of this cause, the money is not available for distribution to the beneficiaries. I have later on in this judgement indicated how the money, if it becomes available, will be shared among the beneficiaries,” stated the judge.

Some of Koinange’s children died, leaving the right of inheritance of the late politician’s property to their next of kin (Koinange’s grandchildren).

From the first wife Loise Njeri, who is deceased (1966), three of their five children are still alive (David Njunu Koinange, Paul Mbatia Koinange and George Kihara Koinange), whereas two are late (Mary Wambui Koinange and Elizabeth Waruinu).

In the succession dispute, Mary Wambui’s place was taken by her child (Koinange’s grandchild), Stella Njeri. Elizabeth Waruinu’s place was taken by her children (Koinange’s grandchildren), Stella Waweru Kibaara and Stephen Mungai Kibaara.

From the second wife, Rith Damaris Wambui, who is also deceased (2010), two of their five children are still alive (David Waiganjo Koinange and Lennah Wanjiku Koinange). Wambui’s other three children died, either leaving behind a spouse or children. Koinange and Wambui’s late son, Isaac Njunu Koinange, left behind a widow, Joyce Njeri Njunu, and five children.

Solomon Kihara Koinange is the other son of Koinange and Wambui, who is late. Kihara is survived by a wife, Susan Kamani Kihara, and their daughter, Angela Wambui.

Florence Wanjiku Koinange is the couple’s other late child, who is survived by her daughter Barbara Wambui Koinange (Koinange and Wambui’s grandchild).

The other two widows left behind by Koinange (Margaret Njeri Mbiyu and Eddah Wanjiru Mbiiyu) did not have any children with the late politician.

So, the 12 beneficiaries of the Late Koinange’s vast estate include: Margaret Njeri Mbiyu (widow), Eddah Wanjiru Mbiyu (widow), David Njunu Koinange (son), Paul Mbatia Koinange (son), George Kihara Koinange (son), David Waiganjo Koinange (son), Lennah Wanjiku Koinange (daughter), Stella Njeri (granddaughter), Stella Waweru Kibaara (granddaughter), Stephen Mungai Kibaara (grandson), Barbara Wambui Koinange (granddaughter) and Angela Wambui (granddaughter).

The administrators of the multi-billion shilling Mbiyu Koinange estate were appointed on March 22, 1993. They included: Rith Damaris Wambui (Koinange’s second wife, who died in 2010), David Njunu Koinange (the late politician’s son with the first wife Loise Njeri), Margaret Njeri Mbiyu (widow), and Eddah Wanjiru Mbiyu (widow). Following Rith’s death in 2010, her son, David Waiganjo Koinange, was chosen to replace her as an administrator.

In his ruling on how the 12 will share Koinange’s properties, Justice Muchelule said the beneficiaries will not been discriminated on gender or marital status.

“The children of the deceased have equal worth, irrespective of their sex or marital status. This is important because the various proposals by the male children appear to indicate that they are entitled to more benefit from the estate when compared to their sisters. First, section 40 makes no reference to sex of the children. It makes no reference to their marital status. In fact, section 38 expressly decrees equal sharing by the children. Article 27(4) of Kenya’s Constitution prohibits discrimination on the basis of sex or marital status,” said the judge.

Distribution

“I direct that plot number LR 209/886 IR 3521 Lunga Lunga Road, 800 acres of Muthera Farm, 10 acres of Waehothia Farm and 5 acres of Etothia Farm shall be sold and the proceeds banked into a joint account opened and operated by the four administrators. From that account, the liabilities and costs of administration of the estate, as will be determined by the court, shall be paid. The balance of the proceeds shall be shared equally by all the 12 beneficiaries of the estate of the deceased.

“Eight hundred (800) acres of the 4, 292 acres of Muthera Farm shall be sold to cover liabilities, debts and costs of administration of the estate. One hundred and fifty (150) acres will be allocated to development of roads, police station, a school and other common amenities. The remaining 3, 324 shall be shared equally among the 12 beneficiaries. That means, each beneficiary shall get 278.5 acres.

“Ten (10) acres of the 645-acre Ehothia Farm shall be allocated to roads and a police station, and another ten (10) sold. The balance is 625 acres. Margaret Mbiyu (third wife) lives here. David Njunu Koinange and George Kihara Koinange (from first house), occupy portions on this land. Margaret Njeru Mbiyu (70 acres), David Njunu (60 acres) Paul Koinange (60 acres), George Kihara (60 acres), Estate of Mary Wambui represented by Stella Njeri (60 acres), estate of Elizabeth Waruinu represented by Stella Wanjiku Kibaara and Stephen Kibaara (60 acres). The remaining size of land is 255 acres, which shall be shared by Florence Wanjiku as represented by Barbara Wambui Koinange, estate of Isaac Njunu Koinange as represented by Joyce Njeri Njunu and David Waiganjo Koinange, estate of Solomon Kihara as represented by his widow Susan Kihara, Lennah Koinange (daughter) and Eddah Mbiyu (widow); they get 42.5 acres each.”

The judge directed that of the 198-acre Waehothia Farm, five (5) acres be sold to settle liabilities and another five acres be allocated to building of roads and common facilities. Koinange’s widow, Eddah Mbiyu, will take 20 acres, whereas the remaining 168 acres of land will be shared among other 11 beneficiaries.

Justice Muchelule ruled that despite elders allocating Kiambaa Waguthu land to Eddah Mbiyu, half of the property will be shared among the 11 beneficiaries as Eddah takes the remaining half (0.5 of an acre).

The judge ruled that four acres of the 98-acre Kiambaa Thimbigua land will go towards construction of roads and public amenities, 1 acre will be for memorial grounds for Koinange’s second, wife Rith Damaris Wambui, who died in 2010. The remaining parcel of land will be shared in different ratios to the beneficiaries.

Closeburn Estate

“It was 640.25 acres, 291 acres were sold to the Aga Khan Group, 100 acres to Centum, and 3 acres to Karura Community Chapel Registered Trustees,” said Muchelule, adding: “That leaves 246 acres of land for distribution.”

Koinange’s children, however, claimed the Closeburn Estate land that is under their custody is between 176 acres to 242 acres.

“I have indicated that Closeburn Estate is the most prime property that the deceased left. I direct that the administrators move with speed to measure the acreage of the estate using a government surveyor. The purpose will be recovery of the land that the estate may have lost and to cause the prosecution of any guilty party. If the estate is found to be 246, then the beneficiaries will proportionately lose their shares, whatever recovered will be proportionately shared,” said Justice Muchelule.

Githunguri land will go to the estate of Isaac Njunu Koinange as represented by Joyce Njeri Njunu as was decreed by the deceased before his death, Ikinu Farm shall go to David Njunu.

Thirty two thousand (32, 000) shares in Koinange Investments, 508 shares at Kenyattu Trading Company other shares at Limuru Dairy, Centum Limited, Danson Macharia Saw Mills, Theta Group Limited, Banana Hill Plot, among other companies, shall all be sold and proceeds shared equally shared among the 12 beneficiaries.

“If the Ksh284 million [from sale of a section of Closeburn Estate], or any amount becomes available, it will be shared equally.”

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