Ex-Minister’s Widow Seek To Have Karura Investments Ltd Directors Prosecuted For Sh1B Land Fraud

The widow of former cabinet minister Arthur Magugu has demanded the prosecution of the directors of Karura Investment Limited for grabbing part of the 100 acres of the family’s land in Muthaiga valued at over Sh1 billion.

The widow Margaret Wairimu Magugu, wants the Police IG through DCI to prosecute Sureshchandra Raichand Shah, a director at Karura Investments, and Suleiman Haruni, a shareholder, for grabbing a parcel of the prime land.

Documents in our possession show the 100 acres in Muthaiga (land parcel LE No 12422/9) belonged to Magugu, who died in 2012, but has now been subdivided and sold to different people.

Already, an investigation by the National Land Commission (NLC) established the directors of Karura colluded with a surveyor to change the details of ownership that saw the land subdivided and transferred to the company.

The NLC found the land was subdivided into two parcels, LR No 12422/203 and LR No 12422/204, both registered in the name of Magugu.

Later, LR No 12422/203 was subdivided into two portions LR No 12422/318 and LR No 12422/319.

LR No 12422/318 was registered in the name of Magugu and LR No 12422/319 registered in the name of Karura Investments.

Magugu who died in 2012 wasn’t involved in the transfer, and neither was his family according to the findings by NLC.

Investigations by NLC established the directors of KIL forged titles to grab part of the land located in Muthaiga North near the Judiciary Training Institute.

The NLC recommended the land registrar expunge the title and police prosecute the directors of KIL.

”This is a convincing explanation in the investigation report to enable the Chief Land Registrar to proceed abd expunge and correct the registers and restore the title deeds to the estate of Hon. Arthur Kinyanjui Magugu (deceased),” the report reads in part.

On February 6, 2021, Priscilla Wango of survey department write a letter referenced HC/NRB/329/2016/Vol1/6 disowning KIL’s deed plan and recommended cancellation abs recalling the same.

”The deed plan attached to the forged tittle is irregular and subsequent documents procured pursuant to the same is technically a nullity,” the report says.

”To be specific, by 12:27am all that had been fine abs tittles LR No 12422/204 abs coincidentally LR No 12422/319 issued both on the same day,” it adds.

According to the probe by NLC, KIL purportedly obtained a parallel title registered as KR No 12422/319 on October 25,1993, the same date Magugu was issued with a new certificate of LR No 12422/204.

KIL had just been incorporated about two months earlier on August 2, 1993.

”The position is that LR No 12422/319 is a basic forgery for the basic reason that Karura Investments Ltd vide the Kenya Gazette Notice No 4169 of June 20, 2014 applied for reconstruction of ‘lost/or destroyed land register’. These adds were in an attempt to sanitize the record.” NLC said.

”It is in my opinion that the validity of LR No12422/319 held by Karura Investments Ltd is questionable and we conclude that it is fraudulent,” the report reads.

NLC noted that the deed file fir LR No 12422/2014 was missing. Margaret complained to the commission early 2019 and again complained on June 18, 2020.

During the earlier investigations, the NLC in June 2015 wrote to KIL requesting them to furnish NLC investigators with all the ownershi documents of piece of land that they claimed.

The widow says the land has been the target of cartels who want to mint hundreds of millions of shillings from it.

Magugu  the son of former colonial chief Arthur Kinyanjui Magugu, served as the Githunguri MP from 1969 to 1988. In 2002 general election, he was re-elected as Githunguri MP on KANU ticket.

In her letter to the Inspector General of Police, the widow notes that when KIL directors appeared before a parliamentary committee, they were unable to present the purported sale agreement, deepening the mystery over the ownership of the asset valued at more than Sh1 billion.

But while appearing before the committee, Sureshchandra and Harunanu claimed their firm purchased the land legally but couldn’t present the transaction documents.

” The sale agreement was signed but Karura Investments Ltd does not have a copy. The process of the sale was made in a hurry. Either the late Magugu may have remained with it or our lawyer then, who has since closed his firm, and is an aged man of over 99 years may have misplaced it,” the directors told MPs.

Two weeks earlier, Land CS Farida Karoney had asked parliament to grant two more weeks to summon the parties to provide documents to back the alleged transfer of the Prime Nairobi property to KIL.