Davidson Kuguru: Meet Kenyan Billionaire Who Sold Inheritance to His Children

 

Kenya relies heavily on family businesses, serving as a significant employment source for more than 60% of the population. Davidson Kuguru discouraged laziness among his children. Despite their prominence, data from the Family Business Institute indicates that merely one-third of these enterprises manage to endure into a second generation, with only 12% reaching a third, and a mere 3% persisting into a fourth. A report from the multinational professional services firm PwC highlights the absence of clear succession plans in Kenyan family-owned businesses.  The East Africa Family Business Survey, conducted by PwC, highlights the challenges emerging post-founder's demise, often leading to public disputes among relatives. Why Davidson Kuguru sold inheritance to his children Globally, the common practice involves children inheriting wealth from their parents without financial obligation. In a departure from this tradition, Kenyan businessman and politician Davidson Ngibuini Kuguru opted to sell his inheritance to his children. Who Owns Kenya reported that although he was affluent, the former Moi-era minister chose not to pass on his wealth to his children through inheritance; instead, he required them to purchase it. Kuguru, who fathered over 45 children, sold them his land as a deliberate measure to instil a strong work ethic and discourage laziness. "Ngibuini was a man with seven known wives who bore him a total of more than 45 children. The high number of children may have been what led him to make the decision.  Peter Kuguru was one of the first children to buy land from his father in Kiamaina, Mathira Constituency, while his brother Maguta Ngibuini purchased a tract of land in Muruguru, Nyeri Town constituency, a source disclosed. The former Mathira MP's decision paid off as the children toiled industriously, most attaining quality education. Which family businesses succeeded? Some of the top family business empires rake in revenues of over KSh 10 billion per annum. The Comcraf Group, a billion-dollar enterprise with a presence in over 40 countries, was founded by Manu Chandaria, who runs the industrial behemoth with his family. Bidco Africa, a subsidiary of Hemby Holdings Limited, was founded by Bhimji Depar Shah and his family. 

by  Japhet Ruto