Dispute over ex-AG Karugu’s estate stalls Maramba tea firm dividends amid fraud claims and succession battles.
NAIROBI, Kenya – June 21, 2025 — A high-stakes legal battle is unfolding over the multi-billion-shilling estate of former Attorney General James Boro Karugu. At the center of the dispute is Maramba Holdings Limited, a Limuru-based tea processor that has emerged as the crown jewel of the late Karugu’s expansive business empire.
Karugu, who briefly served as Kenya’s Attorney General from 1979 to 1981, passed away in December 2022. His estate includes over 753 acres of land across Kiambu, Nakuru, and Laikipia counties, prime Nairobi real estate, Treasury bonds worth KSh 404.7 million, and equity stakes in several companies.
⚖️ Maramba Holdings at the Heart of Legal Wrangling
Victoria Nyambura Karugu, one of Karugu’s children, is seeking to halt dividend payments from Maramba Holdings to other beneficiaries. Represented by Philip Murgor, she claims the will governing the estate is under criminal investigation by the Directorate of Criminal Investigations (DCI).
In a letter dated February 5, 2025, addressed to Chairman Joseph Tharao, Nyambura argues that the individuals acting as executors—Peter Gichuhi, Eliud Gatambia, and Rev. Joshua Mwaura—lack legal standing.
“The will presented is contested and is currently under review by both the High Court and the DCI,” Nyambura’s lawyers noted.
🏘️ A Disputed Legacy: Karugu’s Wealth and Family Rift
Despite his brief legal tenure, Karugu built a quiet yet formidable business empire. Following his 1981 resignation, he maintained a low profile but invested heavily in real estate, agribusiness, and financial markets.
Now, Victoria Nyambura, along with siblings Eric Mwaura Karugu and Rose Gathira, is challenging the validity of the will and disputing marriage claims made by individuals who allege they were Karugu’s wives.
They maintain that Karugu was only ever married to their mother, Margaret Waithera Karugu, who passed away in 2007. Falsified trust and marriage documents are now under DCI investigation and High Court review.
📉 Dividend Freeze Reflects Growing Uncertainty
By urging Maramba Holdings to halt dividend disbursement, Nyambura is triggering broader consequences. The tea processor is a key employer and exporter, and delays in payouts affect not just shareholders but the wider agribusiness ecosystem.
“Until the court gives a clear ruling, no dividend payout should be made,” her letter to the board read.
🔍 Broader Legal and Corporate Implications
Legal analysts say this case reflects a wider issue in Kenya’s estate succession law, especially with family-owned businesses tied up in inheritance disputes.
“Cases like this highlight the importance of clear wills, court-approved executors, and regulatory oversight,” says Beatrice Kilonzo, a Nairobi-based legal expert.
As land, shares, and property values surge in regions like Kiambu and Nairobi, such disputes can ripple into financial markets, disrupt corporate governance, and even delay investment decisions.
🔮 What Lies Ahead?
The High Court will continue hearings into the will’s validity, while the DCI investigates alleged document fraud and executor misrepresentation.
Until then, Maramba Holdings will withhold dividends, pending legal clarity—casting a shadow over the company’s future and Kenya’s succession planning landscape.
