Two brothers charged with defrauding sister of shares in company

Two sons of former Attorney General James Karugu have been charged with defrauding their sister of shares in a multi-billion-shilling coffee marketing company. Eric Mwaura Karugu and Benjamin Githara Karugu, along with Jane Wangechi Kabiu, denied four charges at Milimani Court. The case involves transferring shares from one firm to another without permission.

James Karugu, who served as Attorney General during the late Daniel arap Moi's administration, has two sons implicated in this case. Eric Mwaura Karugu and Benjamin Githara Karugu face charges alongside Jane Wangechi Kabiu, the family companies' secretary. The trio appeared before Chief Magistrate Dolphina Alego at Milimani Court and pleaded not guilty to conspiring to defraud their sister, Victoria Nyambura Karugu.

Prosecutors allege they transferred Victoria's shares from Mathara Holdings Limited to Centurion Holdings Limited without her consent. Kabiu faces individual charges for fraudulently effecting the transfer and submitting forged forms to the companies registrar. Mwaura and Githara are accused of providing false information to DCI officer Peter Ouma on February 5, 2025, claiming they received the transfer forms from Victoria.

The charges state that these misleading statements prompted a police investigation. Defense lawyer Philip Murgor argued for their constitutional right to bail, noting Victoria had been deprived of her shares and justice was needed. The court granted each bail of Sh1.5 million with two sureties, or Sh750,000 in cash. Their bid to challenge the charges failed, and last week they missed a court appearance due to health issues.

The hearing is set for January 20, 2026, as the family grapples with a dispute over shares in the coffee business.

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