Koinange's Sh2.4 billion real estate in Nairobi set for auctioning

The Central Business District of Nairobi is home to a multi-billion-shilling property that has been the subject of a long-running legal dispute among the family of the late former politician, Peter Mbiyu Koinange. The property, currently valued at Sh2.4 billion, is held under Koinange Investments Development Ltd, with Koinange himself serving as the director and majority shareholder.

At the heart of the dispute are Peter Mbiyu Koinange's widows and children from different marriages. Specifically, his widow, Margaret Njeri, and daughter Lennah Catherine, are suing his other widows, Eddah Wanjiru, and her daughter Fiona Mbiyu, over ownership and control of the property.

The legal battle revolves around allegations of unpaid rates and land rents exceeding Sh100 million combined, and accusations of a lack of transparency regarding income collected from the property over the past 20 years. Margaret Njeri and Lennah Catherine claim they have received an auction notice from Nairobi County due to the unpaid rates, posing a significant threat to the estate. They further allege that despite court orders, Eddah Wanjiru has not accounted for about Sh1.2 billion collected from the property, including at least Sh5 million per month from parking fees.

Justice Eric Ogola, in a previous ruling, ordered the administrators of the estate to open a joint account to have the money held by the Unclaimed Financial Asset Authority transferred to the estate. The High Court has also ordered Eddah Wanjiru to account for the money collected from the property over the last 20 years.

The property, which is currently generating at least Sh5 million a month from parking fees, is under threat due to Sh41 million in rates arrears as of February 27, 2025, and more than Sh60 million in unpaid land rents. The family's claims of financial mismanagement and lack of transparency have raised concerns about the future of the estate.

The Koinange succession case is among the most unique succession cases in Kenya's history, with more than 50 parallel cases filed since the initial case was filed in 1981. The case has been heard by numerous judges in the High Court, Court of Appeal, and those who have retired or been dismissed. The late Chief Justice Martha Koome, when she was a High Court judge, described the Koinange succession case as a "theatre of the absurd".

Justice Aggrey Muchelule, now a Court of Appeal Judge, dismissed the Koinange sons' argument that they should get more than their sisters, stating that all children have equal rights irrespective of their gender. He also emphasized the importance of writing Wills, stating that most lengthy and complicated litigation involving rich polygamous Kenyans who die intestate follow a similar pattern.

Justice Ogola also ordered a surveyor's report on Closeburn Estate and decreed that the estate should be divided among 12 beneficiaries, not according to houses. The property, originally 640.25 acres, has been reduced to approximately 360 acres due to sales to the Aga Khan Group, Centum Ltd, and Karura Community Chapel Registered Trustees.

The ongoing legal and financial dispute around the property reflects a complex and protracted family conflict that continues to unfold in the Kenyan courts. The outcome of this case could have significant implications for the future ownership and management of the valuable property in Nairobi's Central Business District.

The ongoing legal dispute over the Sh2.4 billion real-estate property in Nairobi's Central Business District, owned by Koinange Investments Development Ltd, is not just a business issue, but also involves health concerns as the estate's future is under threat due to the unpaid rates and rents totaling more than Sh160 million.
The legal battle among the widows and children of the late former politician, Peter Mbiyu Koinange, partners the world of business with general-news, as allegations of financial mismanagement and lack of transparency have raised questions about the property's future.
The Koinange succession case, a unique and lengthy issue in Kenya's history, has bridged the gap between the finance industry and politics, with the case being heard by numerous judges in various courts and described as a "theatre of the absurd" by the late Chief Justice Martha Koome.
The opportunity for investing in the valuable property in Nairobi's Central Business District hangs in the balance, as the legal dispute's outcome could significantly impact the property's future ownership and management, thus affecting the economy and the business industry.
While the sports world focuses on competition and skill, the Koinange family's legal battle serves as a reminder of the importance of proper planning and transparency in business and real-estate ventures, as demonstrated by the accusations of unpaid rates and a lack of accountability for collected income from the property.