How Gachagua Bought Brother’s Hotel For Sh412M Under Secret Agreement With A Woman

Details have emerged on how Deputy President Rigathi Gachagua, through a secret agreement, sold Olive Gardens Hotel in Nairobi’s Hurlingham area and still retained its ownership by appointing a proxy to run its bank account.

In a sworn affidavit, the purchaser of the property Peterson Njomo Michira said on March 31, 2023, Gachagua approached and convinced him to buy the hotel, which was at the time part of the estate of the late Nderitu Gachagua, for Sh412 million.

“The Deputy President persuaded me to enter into an informal secret arrangement (the secret arrangement) regarding the transaction embodied in the agreement. The terms of the secret arrangement were that the Deputy President would buy the hotel from me by refunding the purchase price of Sh412,000,000,” Njomo said in the affidavit.

Njomo paints a vivid picture of a carefully orchestrated dance, where he was invited by the Deputy President to step into the spotlight and purchase the Olive Garden Hotel. This hotel, once part of the late Nderitu Gachagua’s estate, became the stage for a hidden play. Behind the curtains, the Deputy President pulled the strings, ensuring that while Njomo stood in the public eye as the official buyer, the true ownership remained veiled in secrecy.

The arrangement was like a concealed handshake, one in which Rigathi Gachagua promised to return the Sh412 million Njomo paid, as if refunding a borrowed crown. The DP also committed to hiring workers to refurbish the hotel, polishing it for a future reveal.

To keep his hand hidden, the Deputy President appointed Ms. Julianne Jahenda as the watchful guardian of the hotel’s treasure chest, her name quietly written in the book of accounts.

“To protect the DP’s undisclosed interest in the hotel, I would appoint Ms Julianne Jahenda as a signatory or agent for the hotel’s account at Co-Operative Bank of Kenya Limited,” the affidavit said.

Like a shadow cast over the hotel’s operations, Jahenda was tasked with running the business, her presence a reminder of the Deputy President’s quiet, yet ever-present control over the enterprise.

“I appointed and introduced Ms Julianne Jahenda, who is a close associate of the Deputy President, as a signatory and agent for purposes of the operation of the hotel’s account and I have so far allowed Jahenda to run the hotel as agreed with the Deputy President,” said Njomo the director and shareholder of TM Civil Engineering Limited

In this arrangement, Njomo was but a steward, a character in a play where the real power remained hidden, yet undeniably felt.

Meanwhile, the National Assembly wants the Senate to summon EACC CEO Twalib Mbarak, or a competent officer, to provide information on the Sh3.7 billion nets scandal at Kenya Medical Supplies Authority (Kemsa).

Gachagua is accused of meddling with the procurement process that led to the cancellation of the tender by Global Fund.

The National Assembly, in a letter through Clerk Samuel Njoroge to Senate Speaker Amason Kingi, also wants the EACC to provide information about Gachagua’s declaration about the gifts he received while in office.

“Provide information on the declaration of conflict of interest made to EACC by HE Rigathi Gachagua, the Deputy President of the Republic of Kenya, during his tenure of office to date,” the letter reads.

Other witnesses for the National Assembly are Secretary to the Cabinet Mercy Wanjau, Nairobi Governor Johnson Sakaja and former Kemsa CEO Andrew Mulwa.

Gachagua is the sole witness in the case.

Wanjau accuses Gachagua of opposing the Cabinet-approved evacuation of residents living within 30 metres of the Nairobi River, thus undermining government policy and collective Cabinet responsibility.

Gachagua denied undermining President Ruto but maintained that he opposed what he termed “inhumane” evictions.

Sakaja has sworn an affidavit on shifting Wakulima market traders to Outering Road, a decision that Gachagua resisted.

In his affidavit, Mulwa argues the DP allegedly influenced the award of the Sh3.7 billion Malaria nets tender.

Mulwa says the DP called him around July 11, 2023, and instructed him to hand over to his agent the original bid bond submitted by a company for the tender.