NAIROBI, Kenya — Three children of former Attorney General James Karugu have been charged with fraud-related offences following allegations of an elaborate scheme to unlawfully transfer company shares, in a case that has revived scrutiny over long-running family corporate disputes.
The siblings appeared before the Milimani Law Courts, where they were jointly charged with conspiracy to defraud, forgery, and giving false information to investigators. They all pleaded not guilty.
According to court documents, the alleged scheme dates back to May 2012 and centres on the transfer of shares in Madara Holdings Limited.
Prosecutors allege that the accused conspired to defraud a family member, Victoria Nyambura Karugu, by unlawfully transferring one ordinary share from Madara Holdings Limited to Centurion Holdings Limited.
“On or about the second day of May 2012, at an unknown place in the Republic of Kenya, jointly conspired to defraud Victoria Nyambura Karugu of her shares,” the prosecution told the court during the reading of the charges.
The siblings also face forgery charges, with prosecutors alleging that they created a false share transfer form purporting it to be a genuine document executed by the complainant.
“One count alleges that on an unknown date in the year 2012, within the Republic of Kenya, with intent to deceive, they forged a share transfer form purporting to be a genuine share transfer form of Victoria Nyambura Karugu,” the charge sheet reads.
In addition, the prosecution accused two of the siblings of giving false information to a police officer. The court heard that in February 2025, the two allegedly misled Inspector Peter Ouma at the Directorate of Criminal Investigations (DCI) headquarters during the course of investigations into the disputed share transfer. All the accused denied the allegations.
Chief Magistrate presiding over the matter released each of the accused on a bond of Sh1.5 million or an alternative cash bail of Sh700,000. The court further ordered them to surrender their passports, which will be held by the court pending the determination of the case.
The matter is scheduled for mention on January 20, 2026, for pre-trial directions.
James Karugu, the father of the accused, was Kenya’s second Attorney General, serving between 1980 and 1981. He was a prominent lawyer trained in the United States and the United Kingdom and played a key role in shaping Kenya’s early post-independence legal architecture.
The case adds to a growing number of disputes involving family-owned companies that have found their way into criminal courts, raising broader questions about corporate governance, succession planning, and the criminalisation of commercial disputes.
As proceedings move forward, the court will be expected to determine whether the alleged actions amount to criminal conduct or whether the dispute falls within the realm of civil and commercial litigation.
