Nairobi News


Three brothers in fierce fight for Paradise Lost and other properties

Three brothers are embroiled in a court battle over ownership of a prime property on Kiambu Road estimated to be worth billions of shillings.

In a case where siblings have turned against each other, Mr Daniel Mwangi Mbugua accuses his two younger brothers, Mr Isaac Gichia Mbugua and Mr Joseph Mbai Mbugua, of disinheriting him of the land that hosts Paradise Lost and Paradise Gardens.

The trio are sons of billionaire Mbugua Mwangi and Christine Mithiri Mbugua, both now deceased.

Mr Mwangi, in court documents filed at the Milimani Law Courts in Nairobi, says that the flagship family company, Ndunde Investments, owns properties across the country but he has been locked out of running them by his brothers though he is a director and a shareholder.

Ndunde Investments was registered in 1986 and the other shareholder was their mother.

The company owns Misahara Coffee Estate and Kasarini Coffee Farm, both in Kiambu County, as well as Suguror Ranch in Laikipia County. Other properties are in Kangemi, Runda, Ruiru, and Karen.

It is at Kasarini Coffee Farm that Paradise Lost is situated.


He says that in 2012, his brothers conspired and sold 20 acres of the Kasarini estate for Sh300 million and they did not give him a cent from the accruing benefits.

Mr Mwangi said that though Paradise Lost generates Sh50 million annually, the money is never deposited in the known company account at CFC Stanbic bank.

He accuses his brothers of opening and operating other accounts improperly and thereby defrauding him.

Paradise Gardens, situated at Misahara Coffee Estate, also does not benefit Mr Mwangi, with all revenues going to his brothers and their families, he says.

He accuses Mr Gichia of running the operations of Suguror ranch, which includes rearing and selling livestock, without offering him any benefit.

“Mr Gichia and Mr Mbai have failed, neglected and refused to ensure the affairs of Ndunde Investments Limited are conducted in accordance with its incorporating regulations and the law. The affairs of Ndunde Investment Limited are therefore tainted with illegalities and irregularities and amounts to a breach of my two brothers’ fiduciary duty of care and skill,” states Mr Mwangi.


He further states that the company has failed to pay taxes to the Kenya Revenue Authority.

He now wants the court to order a proper account of all assets and liabilities owned by the firm starting from 2008. He also wants an order directing his brothers to pay him dividends accrued from 2008.

But in the replying affidavit, Mr Gichia accuses his elder brother of having never taken interest in running the company.

He says the company has never held a bank account and only opened one when it decided to sell the 20 acres of land in 2012.

“The use of funds was decided by our mother and none of us has the authority over the same. I reiterate that we are equal shareholders of the company and neither of the shareholders have a superior right over the other. I put Mr Mbugua to strict proof thereof. I deny that we have not been calling any meetings, in fact the applicant is the one who has been disinterested with the ongoings of the company,” he said.

Mr Gichia further adds that their brother received dividends of Sh1 million in the company’s 2015/16 financial year and drives two vehicles bought by the company. He asks the court to dismiss the case.

The matter will be mentioned on September 16.