Win for Njenga Karume children as court removes 3 trustees
What you need to know:
- High Court judge Roseline Aburili ruled on Friday that Mr George Ngugi Waireri, Mr Kung’u Gatabaki and Ms Margaret Nduta Kamithi be removed from the Njenga Karume Trust.
- Ms Aburili noted that the trustees failed to act in good faith as well as placed their own interests ahead of those of the needy and vulnerable beneficiaries by demanding that they drop the case so as to get the trust's support.
- The family lost the battle to save its flagship asset - Jacaranda Hotel - from being auctioned as the rest of the initial Sh40 billion estate continued to shrink.
The children of the late businessman Njenga Karume have won a protracted legal battle against three administrators’ of their father’s diminished property.
High Court judge Roseline Aburili ruled on Friday that Mr George Ngugi Waireri, Mr Kung’u Gatabaki and Ms Margaret Nduta Kamithi be removed from the Njenga Karume Trust.
Justice Aburili said the children's best interests will be served by the exit of the three and ordered that they account for all transactions undertaken since February 24, 2012.
She added that the three will wait for the court to determine whether they were involved in any wrongdoing.
“Upon such accounts being rendered, the court shall determine whether there was any dishonesty on the part of the trustees in their dealings with the trust's assets. Indemnity of the same shall be ordered only after such evidence."
The judge therefore ordered a Mr James Kamau of Iseme Kamau & Maema (IKM) Advocates to supervise removal of the trustees who are to prepare and file the accounts in court within the next six months.
She further ordered the law firm to undertake nomination of persons to fill the vacancies left with the exit of the three.
MISTRUST
Ms Aburili noted that the trustees failed to act in good faith as well as placed their own interests ahead of those of the needy and vulnerable beneficiaries by demanding that they drop the case so as to get the trust's support.
She also said that their opening of undisclosed bank accounts raised suspicion and mistrust with the beneficiaries due to lack of communication, hence a failure on their part to observe due diligence in performing their roles.
“I reiterate that it is apparent that the relationship between the trustees and beneficiaries is acrimonious, has deteriorated and irretrievably broken down despite the filial relationship between them. This dire situation is likely to jeopardise the proper administration of the Trust and thus would be against the welfare of beneficiaries,” she said.
NO SUPPORT
The judge further noted that throughout the trial, the beneficiaries appeared to be desperate for support yet it was not given.
She cited Karume's granddaughter Michelle Karume, who died of cancer in Houston, Texas, saying funds were available and their transfer authorised by the court yet her case was never prioritised.
The judge said this act was unacceptable and violated Michelle's right to access to justice as well as fair administrative action.
The children had asked the court to allow them to divide Ms Wariara Njenga Karume’s estate, which was previously managed by their late father, a rich former powerful Cabinet minister who died eight years ago.
But the trustees asked the court to allow them to continue serving as administrators.
The family lost the battle to save its flagship asset - Jacaranda Hotel - from being auctioned as the rest of the initial Sh40 billion estate continued to shrink.
