This archive report was first published on 29 June 2019.
A court battle is underway between three brothers, Daniel Mwangi Mbugua, Isaac Gichia Mbugua, and Joseph Mbai Mbugua, over the ownership of prime properties on Kiambu Road, including Paradise Lost and Paradise Gardens, estimated to be worth billions of shillings. The case was filed at the Milimani Law Courts in Nairobi on June 29, 2019.
The brothers are sons of the late billionaire Mbugua Mwangi and Christine Mithiri Mbugua, and are directors and shareholders of the family company, Ndunde Investments, which was registered in 1986. The company owns several properties across the country, including Misahara Coffee Estate and Kasarini Coffee Farm in Kiambu County, and Suguror Ranch in Laikipia County.
Dispute Over Property Ownership ¶
Daniel Mwangi Mbugua accuses his brothers of disinheriting him of his share of the properties and locking him out of the company's operations. He claims that his brothers conspired to sell 20 acres of the Kasarini estate in 2012 for Sh300 million without giving him any share of the proceeds. He also alleges that his brothers have been operating the company's accounts improperly, defrauding him of his rightful benefits.
According to Mr. Mwangi, Paradise Lost generates Sh50 million annually, but the money is not deposited into the company's account at CFC Stanbic bank. He also claims that his brothers have failed to pay taxes to the Kenya Revenue Authority and have breached their fiduciary duty as directors of the company.
Response from Brothers ¶
In response, Isaac Gichia Mbugua denies the allegations, stating that his brother has never taken an interest in running the company. He claims that the company has never held a bank account, except when it sold the 20 acres of land in 2012, and that the use of funds was decided by their mother. He also states that his brother received dividends of Sh1 million in the company's 2015/16 financial year and drives two vehicles bought by the company.
The matter is set to be mentioned in court on September 16, 2019. Mr. Mwangi is seeking a court order for a proper account of the company's assets and liabilities from 2008 and an order directing his brothers to pay him dividends accrued from 2008.
