Court allows dependants of Kibaki and his business partners to get rent proceeds
The late Kibaki when he appeared in a Nyeri court in 2014
By Our Correspondent
Worth Noting:
- Apart from the former President, the others who the court confirmed to be rightful shareholders and directors includes former civic leader the late Kimwatu Kanyungu and the late Gadson Kimwatu who was the late President’s neighbour at Kanyange village.
- Others were Kibaki’s brother Samuel Githinji Kibaki as well as Kiiru Gachuiga, Kibera Gatu, Philip Gichuhi, Muruthi Nganga and Francis Gathung’wa.
- “Despite this matter having been resolved by the court of appeal in the judgment delivered on march 21 , 2018, rightful shareholders and directors have been kept away from the rightful earning for over a decade,” noted the judge.
- It’s on this accounts he explained that all original shareholders have since passed on without benefiting from their investment as evidenced by prayers for substitution.
The High court in Nyeri has allowed dependents of the late President Mwai Kibaki and his eight co-partners to share rents proceeds held in a bank account for years.
The rent proceeds have not been shares out for the last 15 years since an ownership row erupted over a multimillion building situated in the heart of Nyeri town.
On Friday, Nyeri based judge, Justice James Olola gave the eight beneficiaries whose parents co-owned the Mathingira Wholesalers Company Limited the green light to access the cash running into millions held at the Kenya Commercial Bank KCB) since 2007.
The proceeds were being received and held at KCB Nyeri branch in joints names of lawyer Kamau Kuria and Lucy Mwai since 2007 when a row erupted over ownership of a prime one storey building
The dispute pertaining to ownership of the suit property and the rightful shareholders, Olola noted was reason why the order to deposit the funds in a joint interest bearing account was made.
Kuria has been representing the late President and his business partners, all from Othaya while Mwai represents the interest of a group of businessmen who have been laying claim to the same property.
Apart from the former President, the others who the court confirmed to be rightful shareholders and directors includes former civic leader the late Kimwatu Kanyungu and the late Gadson Kimwatu who was the late President’s neighbour at Kanyange village.
Others were Kibaki’s brother Samuel Githinji Kibaki as well as Kiiru Gachuiga, Kibera Gatu, Philip Gichuhi, Muruthi Nganga and Francis Gathung’wa.
“Despite this matter having been resolved by the court of appeal in the judgment delivered on march 21 , 2018, rightful shareholders and directors have been kept away from the rightful earning for over a decade,” noted the judge.
It’s on this accounts he explained that all original shareholders have since passed on without benefiting from their investment as evidenced by prayers for substitution.
“The court of appeal has since April 22 2021 settled on its orders issued on March 12 and I am persuaded there is merit in this application dated November 8, 2021,” Olola observed.
The judge also allowed an application by Kuria to be allowed to enjoin and substitute four co owners who have since passed on.
Those allowed to join the case now include Daniel Githinji for Gitonga and Egedios Mwangi and Mwangi Kibera for the late Kibera Gatu.
Kuria and other legal representatives of the deceased had among other orders sought to be allowed to enjoin and substitute four co owners who have since passed on.
Others are Pauline Wangui Wanyoike and Jane Wanjiku for the late Kanyungu, while Peter Weru and Jecinta Mathenge are suing to be recognized as representatives of the late Gichuhi.
Ng’ang’a Muruthi and Jecinta Njoki are also suing to become representatives of Muruthi Ng’ang’a.
“Death has taken the toll on the eight co- owners and is only his Excellency former President Mwai Kibaki who is alive,” Kuria had submitted.
Kibira, Gatu and Gitonga, he noted, died during the pendency of the suit but their legal representatives were not substituted.
“Gachung’wa also died during the pendency of appeal. Legal representatives of two other namely Gichuhi and Ng’ang’an have not enjoined,” the lawyer added.
Given the age of the dispute, Olola noted, a number of disputant have passed away prompting their beneficiaries to seek for substitution orders.
It is apparent he said the ownership of the company arose between Kibaki groups and another group of directors led by Peter Munuhe, Sammy Kiiru and James Kanyi who also claimed to be bonafide shareholders of the firm.
Munuhe, Kiiru and Kanyi had claimed by buying shares in the Mathingira, they automatically became legitimate shareholders and directors of the company.
But in a twist of events, the Judge declined an application by Lucy Mwai law firm, representing the other group to be paid a fee from the withheld rent.
He said there was no evidence of a retainer because by the time her firm was being instructed the company was in the hands of imposters masquadering as rightful directors and shareholders.
“The court of appeal declared that those who instructed Ms Mwai to file the suit were not proper and legitimate owners, hence lacked authority to act for the company,” Olola explained.
He said the law firm must be aware of those who instructed it purporting to do so on behalf of the company, stating they cannot be said to have no recourse in law.
Utility
According to a certificate of incorporation the nine members held the following numbers of Ordinary shares.
Kibaki 1323, Gachuiga 2374, Kinywatu 1112, Gathungw’a 579, Muruthi 1583, Gichuhi 1201, Gitonga 349, Gatu 420 and Githinji Kibaki 1050.
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