Njenga Karume’s Properties: The family of the late former Minister Njenga Karume will sell 17 per cent stake of their late father’s Sh17.5 billion property.
The children want to raise Sh2.975 billion to pay debts after the Karume estate ran out of liquid cash. “The estate is rich in properties but it does not have the liquid money,” the spokesperson Stephen Karau said.
The late Njenga Karume’s properties owe KRA and other creditors Sh350 million and Sh 2.62 billion respectively. Among the products earmarked for sale include Village Inn hotel, 25 acres of Land in Elementaita and Kacheliba tea estate.
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“The decision to settle outstanding bills is part of the deal we signed in May this year binding us to a mediation process. This has led to the formation of the mediation council for the Njenga Karume estate,” Karume’s fifth daughter known as Jane told reporters.
The family, the trustee and executors were addressing journalist at a Nairobi hotel after they announced to settle the family battles outside the court.
“The mediation council comprises of the ten generic families of Njenga, the trustees and executors,” Njenga Karume’s grandson Matu Njenga said.
Njenga Karume’s properties estate has been the subject of bitter wars between the trustees Karume appointed before his death in 2012 and his children.
The trustees are George Warieri, Kung’u Gatabaki and Margaret Nduta Kamithi whom his children wanted to be replaced for allegedly mismanaging the estate.
An advertisement weeks ago on the sale of some of Karume’s properties, including 11 parcels of land, had sparked a bitter tussle between kin and trustees, with the children saying they had not been informed.
“We have agreed on a retreat. It can be done in a month’s time. It might take longer, but we are very prepared for that,” said Karau.
He added that the estate being in the limelight for court battles had caused “distress” to trustees, executors and beneficiaries, thus the formation of the council.
The council comprises ‘10 generic families’ of Karume, trustees and executors who signed a ‘binding document’ in May 2018.
The lead mediator, the Rev Geoffery Njenga, said this was a cheap, quick and confidential process compared to bruising court battles.
Retired judge Lee Muthoga is part of the team and is being consulted on legal matters. “Mediation takes care of the interests of the family members as opposed to litigation, which was only taking care of rights,” he said.
Jane Matu, Karume’s fifth born, said at first the family had not been keen on the calls for mediation after three years of court battles that had sharply split the members.