Karume family appoints new trustees - Beaking Kenya News

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Friday, 16 October 2020

Karume family appoints new trustees


The Njenga Karume family has announced the appointment of new trustees.

The appointments were made after the High Court in May ordered the removal of George Waireri, Kungu Gatabaki and Margaret Kamithi as the Njenga Karume Trust registered trustees.

In a 136-page decision, Justice Roselyn Aburili said the interests of the children and the beneficiaries under Njenga Karume Trust would be served best by removing the three and new trustees appointed.

In a press release, the family said following a series of meetings, Kuria Muchiru, Lucy Karume and Rachael Mbai will now steer the Trust.

The family said it is confident that the new lineup will turn around the business empire and grow it to the level envisaged by the founder.

The three will be required to give an account of all transactions undertaken, payments made and funds received and expenditures incurred on behalf of the trust since February 24, 2012 to date.

Once the accounts are rendered, Aburili said the court shall determine whether there was any dishonesty on the part of the trustees in their dealings with the Trust's assets. Indemnity of the trust, she said, shall be ordered only after such evidence discloses dishonesty on the part of the trustees.

Muchiru, who will be chairman of the trust, is a retired partner of PricewaterhouseCoopers, where he worked for 35 years.

According to the Trust Deed established by Karume, the chairman should not be a beneficiary. “Muchiru fits the profile of the individual who would be best suited to steer the trust forward,”.  The Trust Deed also requires that preference be given to beneficiaries in the appointment of trustees.

As a result, the family unanimously agreed on Lucy.

Mbai is a partner at Kaplan and Stratton Advocates and has been a lawyer for more than 25 years. She has also been a director at Karume Holdings Limited, which is one of the entities under the trust.

The trust was established by Karume through a declaration of trust dated May 3 2011, with the aim of preserving and managing the founder’s assets for the benefit of the corporate and individual beneficiaries.

The decision to remove the three trustees comes after Albert Karume, Samuel Karume and Lucy Wanjiru (the children and beneficiaries of the Njenga Karume Trust) said they were appointed unprocedurally.

The judge said an analysis of the evidence and provisions of the Trust Deed clearly indicate that the remaining trustees did not follow the provisions of the deed in appointing Waireri and Kamithi.

“Appointment of Waireri and Kamithi as trustees after the demise of the founder and resignation of Justice Kihara was unprocedural and in gross violation of the express provisions of the Trust Deed.”

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