This archive report was first published on 29 June 2019.
A high-stakes court battle is underway in Nairobi, pitting three brothers against each other in a dispute over the ownership of prime properties on Kiambu Road, estimated to be worth billions of shillings. As reported on June 29, 2019, Daniel Mwangi Mbugua has accused his younger brothers, Isaac Gichia Mbugua and Joseph Mbai Mbugua, of disenfranchising him from the family business.
The brothers are sons of the late billionaire Mbugua Mwangi and Christine Mithiri Mbugua. Ndunde Investments, the family company, was registered in 1986 with their mother as a shareholder. The company's portfolio includes Misahara Coffee Estate, Kasarini Coffee Farm in Kiambu County, and Suguror Ranch in Laikipia County, among other properties in Kangemi, Runda, Ruiru, and Karen.
At the center of the dispute is the alleged sale of 20 acres of the Kasarini estate in 2012 for Sh300 million, with Daniel Mwangi Mbugua claiming he did not receive any benefits from the sale. He also alleges that his brothers have been operating the company improperly, including failing to deposit revenues from Paradise Lost, which generates Sh50 million annually, into the company's account at CFC Stanbic bank.
Allegations of Mismanagement ¶
Daniel Mwangi Mbugua accuses his brothers of mismanaging the company's affairs, including failing to pay taxes to the Kenya Revenue Authority. He 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 accrued dividends from the same year.
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 did not have a bank account until the sale of the 20 acres in 2012 and that the use of funds was decided by their mother. Isaac Gichia Mbugua also states that Daniel Mwangi Mbugua received dividends of Sh1 million in the 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. The dispute highlights the complexities of family-owned businesses and the challenges of resolving internal conflicts through legal means.
