Tussle for Late Minister Njenga Karume's Billions Drags On

The tussle over the multi-billion shilling estate belonging to late Cabinet Minister Njenga Karume is set to take a new turn after the high court barred trustees from spending proceeds gotten from the sale of Kachoroba farm unless directed by the court.

In her ruling, High Court judge Roselyn Aburili said that disbursement from the proceeds will only be sanctioned by the court, taking the fight between the trustees and Karume’s children to a new front.

“That there shall henceforth be no more disbursement of the balance of the proceeds of sale of Kachoroba farm thereof until further orders of this court to be given after the consideration of the affidavit of compliance and responses thereto,” she said.

Justice Aburili gave the orders after the trustees filed an affidavit bearing details of the sale of the estate at Sh214 million and how it has been spent so far.

The trustees were further ordered to appear in court later this month, when the case will be mentioned.

Before his demise in 2012, Karume had entrusted three holding companies to be managed by the Njenga Karume Trust under the trustees. The trustees includes George Warieri, Kung’u Gatabaki and Margaret Nduta Kamithi.

However, the dispute started in 2015, when three of Karume’s children namely; Albert Kigera Karume, Samuel Karume and Lucy Karume moved to court seeking to remove the trustees.

A year later, the trustees and the children by an agreement adopted as court order, resolved to sell part of Kachoroba farm, with the proceeds being used to settle medical expenses of the ailing beneficiaries, education expenses among other expenses.

Barely six years after they took over the management of the multi-million estate, documents deposited in court show that trustees are borrowing cash from law firms to settle bills.

For instance in 2017, the Karume trust paid Jacaranda Holdings Sh37 million of the proceeds to settle PAYE and VAT arrears.

Warieri, who chairs the trust and his co-trustee Mr Gatabaki also walked away with Sh19.6 million in responsibility allowances for the period starting March 2015 to December 2017, while a further Sh17 million was spent on sitting allowances of the trustees, which accrues at the rate of Sh100, 000 per sitting.

Karume's children have accused the trustees of neglecting the beneficiaries, declining to settle fees or provide maintenance.

Karume had named Court of Appeal judge Paul Kihara Kariuki as chairperson of the Trust, but he resigned following the death of billionaire.

“After the resignation of Justice Paul Kihara Kariuki as a trustee of the Njenga Karume Trust, the then or existing trustees of the Njenga Karume Trust failed to adhere to the intention and wishes of the founder by refusing to consider any of the beneficiaries of the Trust," Karume's children claim.