New twist in family feud over Sh4 billion Nginyo Kariuki estate

The judge also ordered Nginyo's widow Margaret Wangari Nginyo and his two children Jane Alice Wambui Kiragu and Silas Macharia Kariuki to account for all funds and proceeds they have collected or received from the estate since his death on February 24, 2020 and how they were utilized, spent or preserved.

Justice Mutuku issued the orders following an application by Nginyo's daughter Brenda Nyambura Kiragu, who was born out of wedlock by the late politician. She claimed there has been meddling in the property and also wants the court to nullify her father's written will dated June 13, 2014, which excluded her.

Nginyo left a vast estate, that includes real estate, farming, bank accounts and government bonds, and a will that is being contested in court.

He also had interests in several companies as well as money in several bank accounts, particularly I & M Bank, Consolidated Bank, Habib Bank and Equity Bank.

He is survived by his wife Margaret Wangari Nginyo and her six children – Jane Wambui Kiragu, James Anthony Kariuki, Rose Wanjiru Kariuki, Sarah Mukuhi Kariuki, Scholastica Njeri Kariuki and Silas Macharia Kariuki.

In urging the court to order the audit, Ms Kiragu, a lawyer, told the judge that immediately after the death of her father, her step-mother and her children Jane Alice Wambui Kiragu and Silas Macharia Kariuki took over the management of the estate. 

She said the three have continued to collect rent, withdraw money from his bank accounts, take over his property and make decisions affecting his estate without letters of administration, an order from the court or involving other beneficiaries. 

Accurate and audited accounts

Ms Kiragu said that Ms Nginyo and her two children applied for and transferred Sh1,158,000 from Nginyo's bank account at Consolidated Bank of Kenya.

She claimed that before he died, Nginyo had agreed to buy a property known as L.R No. 155/123 from John Kahara Ngugi, Christopher Njoroge Ndungu and Hezron Mwangi Karoga. 

However, she said, his son Silas Macharia Kariuki, without letters of administration or an order of the court, is trying to divest and dispose of that property from the estate to his mother, Ms Wangari. 

Ms Kiragu further contended that the three family members (Ms Wangari, Ms Wambui and Mr Macharia) continue to collect rental income, receive payments for and on behalf of the estate and misuse the same without accountability or an order of the court as required. 

In her view, these actions amount to intermeddling with the estate, which is a criminal offence under Section 45 (2) of the Law of Succession Act.

The court stated that failure to account for the estate as ordered, Nginyo's widow together with Ms Wambui and Mr Macharia will refund to the estate all and any of the proceeds they have withdrawn from Nginyo's accounts or misappropriated from the estate. The three are listed as respondents in the case. 

Another order is that the respondents, their agents, servants and or employees have been restrained from intermeddling or interfering with the estate, including bank accounts domiciled at Consolidated Bank and I & M Bank.

"It is my view that with the allegations made by Ms Kiragu and the explanations given by Wambui, and given my finding that there has been intermeddling in the estate of Nginyo, the only way this court and the other beneficiaries can be satisfied on how the funds withdrawn were utilised is to hold the respondents accountable," ruled the judge. 

"They must table before the court full, accurate and audited accounts in respect of the operations of the estate from the date of the death of Nginyo to date. This will become necessary because the will of Nginyo, among other issues in this estate, is contested," she explained. 

Intermeddling with the estate

Ms Wambui, the eldest child of the politician, had opposed Ms Kiragu's application. She said she is one of five executors of the disputed will. The other executors are named as Margaret Wangari Nginyo, Jane Wambui Kiragu, James Anthony Kariuki, Scholastica Njeri Kariuki and Silas Macharia Kariuki.

While denying allegations of intermeddling with the estate, Ms Wambui stated that as executors of the estate they have power under section 80(1) and 83 of the Law of Succession Act to preserve the estate and pay out of the estate any outstanding debts.

She submitted that the powers of the executors, unlike those of administrators, flow from the will.

"The respondents are not in any way intermeddling with the estate of Nginyo, but are merely carrying out their duties as executors of the estate as expected of them as the executors of the will," she stated as she asked the court to dismiss the application with costs.

She explained that the transfer of Sh1,158,000 was for the purposes of facilitating the continuance of the Kiambu Project, which was in the name of her father and which had commenced during his lifetime.

Ms Wambui told court that she signed the transfer of the money after being advised by the relationship manager of Consolidated Bank, Mr Erastus Gachoya, that she had the mandate to sign for the transfer, given to her by her father before his death.

The court heard that the Kiambu project was being undertaken by Pema Holdings Ltd, a company in which Nginyo had majority shares, while other shareholders are the three respondents. 

Ms Wambui added that her father had expressed intention to buy the property but died before doing so, and therefore it does not form part of the estate of the deceased.

She said she is aware of the duties of the executors to account to the court and to the beneficiaries all payments made in the course of their duties as executors and that they will faithfully render a true and just account.

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