The Estate of former Nyeri Governor, the late James Nderitu Gachagua, has come out to counter claims of disinheritance of beneficiaries and misappropriation of assets.
In a public statement, the Executors of the Estate detail how the wealth of the former politician valued at billions of shillings was distributed to 23 beneficiaries after payment of liabilities.
The Executors include former Deputy President Rigathi Gachagua, say they have been compelled to set the record straight following what they term “the prejudicial effects” of the ongoing public discourse regarding the late governor’s estate and how it was dealt with following his death in 2017.
“The Executors would have preferred to limit the publication of affairs of the Estate to court filings and requisite engagement with the Beneficiaries rather than engage in public discourse on the same,” reads the statement issued by the law firm of Musyimi and Company Advocates who have acted as Advocates for the Estate since 2017.
The statement goes on, “However, the magnitude of inaccurate and misleading information disseminated widely in both mainstream and social media constrains the Executors, drawing on information and records mostly in the public domain, through court and other filings, to come out to clear the air for the benefit of all the parties concerned.”
The Executors further say they have continuously engaged the beneficiaries throughout the entire estate administration process through an Estate Office, including supporting the dependants with school fees, maintenance and living expenses and had accounted for all the estate income and payments.
Apart from Hon. Gachagua, the other Executors are prominent lawyer and Senior Counsel Njoroge Regeru and Quantity Surveyor and Advocate Mwai Mathenge.
The Executors obtained a grant of probate from the High Court in July 2017, which was confirmed in March 2018. This is the legal document that gives executors of the will of a deceased person the power to collect their assets, settle debts and distribute the net assets to beneficiaries. A house in Lang’ata/Karen bequeathed by the Deceased to his first wife, two houses in Karen and Nyeri respectively left to his second wife and 4 acres of ancestral land bequeathed to his two eldest sons have been dealt with in strict compliance with the Will. The respective beneficiaries own and occupy the properties bequeathed to them.
The estate settled liabilities amounting to Ksh 1.07 billion owed to commercial banks and other creditors, after selling some properties key among them, Kiangwachi and Queensgate. Other key assets – Olive Gardens and Vipingo Beach Resort were sold in 2023. The net surplus cash, amounting to over Ksh 648 million, was distributed to the beneficiaries in accordance with the terms of the Will.
The late Nderitu Gachagua, who died in a hospital in London in February 2017, left behind a will stating that most of his properties be sold and the net proceeds of sale after settlement of his debts, distributed to his beneficiaries, including his mother, 2 wives and 6 children.
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In the will, the late Gachagua directed any beneficiary challenging the will would be automatically disinherited, leaving little room for protracted disputes involving his estate. At the same time the deceased made specific bequests to each of the 23 beneficiaries being his dependents and family members.
The Executors deny claims of alleged disinheritance saying the distributions were done in strict compliance with the terms of the will. “Specific bequests have been honored and cash distributions made in accordance with the wishes of the Deceased. The Executors are not aware of the instances of disinheritance that have been alluded to in public media and fora,” the Executors explain, adding that there were no legal proceedings in respect of the alleged disinheritance nor has the will ever been challenged in any court.
“To the contrary, all Beneficiaries have received and accepted their respective shares under the Will. Prior to this, all Beneficiaries signed the consent to Confirmation of Grant that was filed in court.” Indeed, the Executors observe, in instances where issues have been raised in court the High Court has affirmed their diligence in management of the Estate’s affairs.
The Executors also say that the beneficiaries were fully involved in the sale of assets. “Between 2018-2020, the Executors worked collaboratively with the Beneficiaries to find buyers for the assets….” and thereafter “…during COVID, the Executors identified Messrs Villa Care out of five (5) potential agents for the purposes of aggressive marketing.”
The Executors also say that they concluded four (4) private treaty sales with the approval of the beneficiaries – one in 2018 (Kiangwachi – sold for 25M), another in early 2022 (Queensgate – sold for 590M) and two sold in 2023 (Olive Gardens and Vipingo Beach). As part of the sale proceeds, the beneficiaries benefited from a surplus Ksh. 53 million realized from savings made to administration and other costs as a result of the diligence of the Executors. Over and above sale proceeds, a number of dependent beneficiaries had, during the course of administration, received maintenance and other payments amounting to Ksh. 92 Million.
Cash distributions to the beneficiaries were done according to strict formula in the will ranging from one percent (1%) to ten per cent (10%) per beneficiary, cumulatively running into hundreds of millions of shillings.
However, some of the properties namely 70 apartments in Nairobi valued at KShs. 696 Million and parcels of land in Lusoi, Nyeri were transferred to beneficiaries in accordance with consents reached amongst them.
In the statement, the Executors have emphasized that they have and will continue to discharge their fiduciary duty to all stakeholders involved in the Estate. Upon completion of the estate administration, the Executors say they will submit the final estate accounts to the High Court to which they are accountable to.
“The Executors have diligently and faithfully undertaken their duties, expended effort, time, personal significant monetary expense to preserve assets and to ensure the Estate of the Deceased is administered lawfully in accordance with his wishes.”
