The Sh10bn empire Koinange built

Properties worth over Sh10 billion are the subject of the bitter legal wrangles among the family members of former Cabinet minister Mbiyu Koinange.

The polygamous former minister in President Jomo Kenyatta’s government died without a valid will on February 13, 1981 leaving behind four wives, 18 children, two grandchildren and other dependants.

On March 22, 1993, the High Court issued the letter of administration to Koinange’s eldest son David Njunu and widows Ruth Damaris Wambui, Margaret Njeri and Eddah Wanjiru.

Sixteen years later, the court ordered the four administrators of the estate to file an application for confirmation of grant and distribution of the estate within 21 days after establishing the assets of the deceased and taking an inventory.

However, this could not be accomplished following the intense wrangles for the control of the estate and subsequent court battles that have split the beneficiaries right down the middle.

With the deaths of some of the Koinange children, the remaining beneficiaries include David Njunu, Maragaret Njeri, Eddah Wanjiru, Paul Mbatia, George Kihara, David Waiganjo, Lennah Wanjiku, Barbara Wambui, Stella Njeri and Susan Wanjiku.

The disputed assets include one of the biggest undeveloped plots in the CBD, a Sh2 billion holding next to the Reinsurance Plaza building.

There are also shares in numerous companies including the Theita Group, Industrial and Commercial Development Corporation (ICDC), Magadi Soda, and two prime plots in Kiambu.

Others are the Njunu Farm in Ol Kalou in Nyandarua County and 32,000 shares in the Koinange Investment and Development Company.

The estate owns 291 acres of prime land in Closeburn Estate in Runda, 100 acres of which was sold by the family members to Jumbo Properties for Sh1 billion. The remaining acreage, according to the administrators, will be distributed equally to the beneficiaries once the court disposes of the succession suit.

Other family assets include the 640-acre Ihothia farm, Waihothia farm (198 acres), Thimbigwa/Waguthu (98 acres), Ikunu (13 acres), Githunguri (16 acres) and a petrol station, three buildings in Nakuru Block 8/40, 8/41, 8/42, Koira Bulding in Mombasa, two plots in Karuri and Kiambaa in Kiambu. There is also the 4,296-acre Muthera farm in Nakuru Coutny.

Other properties to be shared are shares in Kenyatu Ltd, Mboi-I-Kamiti, Gatatha Farmers Kiambaa Women Group, Kanunga Farmers Co-operative Society, a plot in Dagoretti and Lunga Lunga property in Nairobi’s Industrial Area.

There are also shares in BAT, Danson Macharia Saw Mills in Elbugon, Limuru Dairy, 11,000 shares in Ocean View Beach Hotel and another 1,000 shares in Oceanic Hotel in Mombasa.

Minutes of several meetings of the administrators and beneficiaries seen by the Sunday Nation show that the properties are ready for distribution. However, the family members have expressed concern over the whereabouts of the asset documents.

Validity of property status

“The whereabouts of the property documents or who has their custody and moreover the validity of their status is still uncertain,” said the administrators. They include leases, plans, title deeds and possession.

The documents also indicate that several unsettled debts continue to haunt the estate and frustrate efforts aimed at sorting out the final distribution of the properties.

“Some payments which may be seen as petty are hindering us from obtaining final land documents in City Planning Departments and consequently shutting off all the avenues towards the distribution of the estate,” observed the members.

The family members said the Limuru County Council had threatened to forcefully acquire the Waihothia farm for the development of a bus park at the Nazareth Hospital area. But the administrators have resolved to engage the services of a lawyer to stop the council from interfering with the estate property.

After the courts fully determine the avalanche of suits, the Koinange family will embark on the exercise of distributing the property to the beneficiaries longing to enjoy the fruits of the empire built by the late Mbiyu Koinange.