The Environment and Land Court has overturned a temporary court order blocking third parties from using or developing property tied to the estate of billionaire politician Stanley Githunguri (now deceased).
The court admitted it had made a mistake by ruling against the defence without realising their response was already on file.
In a ruling delivered on Thursday, judge Charles Mbogo found that the third defendant, Fredrick Kimani, had properly filed his defence documents on November 29, 2024. Despite this, the court granted an injunction to the estate’s administrators on February 9.
The February order had erroneously granted an injunction in favour of Lilian Githunguri and Clare Githunguri based on the belief that the application was completely unopposed.
The legal dispute stems from Environment and Land Case No E330 of 2024, in which the administrators of Githunguri's estate sued seven parties — including Kimani, William Somoe, Samuel Kariuki, Gulf African Bank, Chief Land Registrar and auctioneers — to safeguard prime real estate assets.
On August 9, 2024, the administrators sought interlocutory injunctions to restrict third-party dealings, possession, and use of the suit property. Although Kimani filed a comprehensive Replying Affidavit on November 29, 2024, his legal counsel encountered technical logging difficulties during the virtual hearing on February 9.
Unaware of the filed affidavit on record, the court treated the motion as unopposed and ruled against the defendants.
Kimani subsequently petitioned the court on April 10 this year.
Counsel for the Githunguri estate opposed any changes, arguing that reopening the matter was unnecessary and that lifting the freeze could harm the family's property interests. However, judge Mbogo rejected this, ruling that the interests of justice require giving every party a fair chance to be heard before a major decision is made.
The judge emphasised that the court has the power to correct its own oversights to prevent unfairness caused by technical issues or innocent mistakes.
The original dispute will now be scheduled for a fresh, priority hearing so the court can consider all sides equally.
The tycoon's estate has faced numerous family disputes and separate court battles over his vast wealth since his death on November 29, 2022.
Githunguri, a former Kiamba MP and executive director of the National Bank of Kenya, died in November 2022 at the age of 77. He left behind a commercial empire amassed for more than six decades. It was estimated at Sh1.8 to Sh1.9 billion at the time of his death.
The estate spans commercial real estate, corporate and banking equities, and land. Its flagship properties include Lilian Towers in Nairobi, which houses the 680 Hotel and Ridgeways Mall along Kiambu Road.
Through SM Githunguri Limited, a core corporate holding entity, the estate holds significant equity stakes in leading commercial banks, East African Breweries PLC and Nation Media Group. It also includes extensive parcels of prime commercial and agricultural land across Kiambu County, Ruiru and the broader Nairobi metropolitan area.
The main petition contesting the formal validity of Githunguri’s written will remains active before the High Court.
The court has directed that disbursements, sales or major allocations of estate funds cannot be executed until the main validity suit regarding the will is determined.
Clare and Lilian were appointed as administrators and executors managing the estate’s obligations.
