Media mogul SK Macharia loses control of son’s vast estate
Media mogul Samuel Kamau (SK) Macharia has lost control of his deceased son’s Sh1.2 billion estate.
The High Court revoked the letters of administration that had been granted to the shrewd businessman and his wife Serah Njeri on April 5, 2019 as John Gichia’s parents.
The estate had been put under their administration as grandparents of Adam Kamau, Gichia’s son, who was a minor. Gichia died in a road accident in 2018 when his son was 16 years old.
Justice Stella Mutuku also revoked another ‘fake’ grant dated March 11, 2019 allegedly issued to Mr Macharia. The questionable grant was purported to have been signed by Justice Aggrey Muchelule, who stopped handling the matter on December 20, 2019.
The revocation of the two grants stemmed from applications filed by Gichia’s former girlfriend Lisa Anyango Amenya and siblings David Karanja Macharia and Stella Nyanjiru Macharia.
Adam was also opposed to his grandfather’s management and has a separate petition seeking to take full control of the estate since he’s now an adult.
The estate comprises shares and interests in more than six trading companies, which have investments in insurance, communications and real estate. They include Serenity Media Productions Ltd, Big Five Conservancy, Bushfire Media Distributors, Toi Redevelopment and Harbour Capital Ltd.
Gichia also owned four motorbikes and nine luxury vehicles, including two Range Rovers, a Jaguar, BMW and a Porsche 911. There are also five residential houses in Nanyuki, Loresho, Kyuna Crescent, Kibarage and Mugumo Crescent.
The registered owner of the properties is AKM Investments Ltd, a name reportedly derived from the initials of Adam Kamau Macharia.
Gichia was also the executive director of Direct Line Assurance Company Ltd and the son occasionally worked there during school holidays.
Adam says Direct Line has 15 million shares distributed amongst 10 entities. Janus Ltd, Sureinvest Company and Stenny Investments PTY Ltd hold three million shares each, about 60 per cent of the total.
Others are Triad Networks (2,999,407 shares), AKM Investments (1,551,000), Royal Media Services (1,448,593) and Royal Credit Card (997). Dan Karobia, Purity Gathoni Macharia and SK Macharia hold one share each, translating to 0.0 per cent of the total.
In his opposition to his grandfather’s control of the business, Adam argues that Mr Macharia is financially stable and describes himself as the only son and sole beneficiary of the estate.
However, Mr Macharia told court that his grandson had made mistakes, including acting on incompetent advice.
“He is being used by my opponents in litigation (reference was made to other disputes pending in other courts). Mr Kamau is acting on mistaken belief that his late father had proprietary interests in the assets of Directline Assurance Company Ltd, in which his company AKM Investments Ltd was a shareholder,” said Mr Macharia.
He denied the applicants’ claims that the joint grant issued to him and Ms Njeri was obtained through deception. He maintained that the document was properly issued to them being the parents as Gichia left no widow, according to the order of priority under Section 66 of the Law of Succession Act.
He added that by the time Ms Njeri filed her notice to withdraw her application to be appointed as an administrator on January 25, 2019, the court order was already out.
Ms Njeri, in her affidavit, said her application to withdraw from the management of the estate was an attempt to maintain peace and unity in the family, adding that there was no ulterior motive.
Money obtained by false pretences
Mr Macharia also told Justice Mutuku that Gichia’s former girlfriend is not an heir of the estate.
He described Ms Anyango’s application as an abuse of the court process because it was allegedly made for an improper purpose to assist former administrators David Karanja and Stella Nyanyiru to retain control of Sh314.9 million belonging to Adam.
He said the money was obtained by false pretences from Direct Line Assurance Company Ltd. The judge said the letters of administration ought not to have been issued.
Justice Mutuku also declined to determine Adam’s allegations that his grandfather lacked capacity to seek the grant because of bankruptcy. The judge noted that the issue relating to Mr Macharia’s bankruptcy is alive in other courts.
She further noted that the circumstances of the succession cause are such that the grants have been rendered useless and inoperative and have also been overtaken by events.
“The beneficiary of the estate, who is described as the sole beneficiary, has since attained age of majority. There is a petition brought by him seeking to be issued with a grant of representation. This petition is pending,” said the judge.
The court further pointed out that Gichia’s mother had withdrawn her application to be appointed as an administrator, hence she is no longer interested in the estate.
The judge said circumstances dictate that the court re-visits the issues of representation in the estate afresh and make appropriate orders after hearing the parties.
“To avoid the situation where this estate is left without representation, this court allows parties to move with haste within 30 days and propose an administrator pending the hearing and determination of the pending applications,” directed Justice Mutuku. BY DAILY NATION
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