NAIROBI, Kenya Aug 11 – A company secretary and two sons of former Attorney-General James Karugu accused of conspiring to fraudulently transfer their sister’s shareholding have asked the Milimani Law Courts to substantially reduce the Sh700,000 cash bail imposed on each of them.
Jane Wangechi Kabiu alias Jane Kabiu Gitau, Eric Karugu and Benjamin Karugu argue that the bail terms are excessive and disproportionate to the value of the disputed share, which they say is worth only Sh100.
The three are facing criminal charges over the alleged fraudulent transfer of one ordinary share belonging to their sister, Victoria Nyambura Karugu.
In an affidavit sworn by Eric Mwaura Karugu on behalf of the applicants, the accused argue that the value of the disputed share should have been taken into consideration when setting their bail terms.
“From the share transfer document the value of the said share is Ksh100,” Mwaura states in the affidavit.
He further disputes the claim that Victoria lost ownership of the share, arguing that the alleged transaction merely moved the share from one company to another while leaving it registered in her name.
“The alleged share was just moved from one company to another and is still in her name,” he says.
The applicants also told the court that they were forced to turn to friends and relatives to raise the Sh700,000 cash bail each following their arrest and detention.
“With the strenuous efforts all the accused were able to raise the cash and made the deposits,” Mwaura states.
However, they now claim that the people who assisted them are demanding repayment, placing them under financial pressure.
“Without exception all the applicants have been hard pressed in the matter and presently have been called upon by their benefactors to refund the sums borrowed,” the affidavit reads.
The three argue that the bail terms should comply with Article 49 of the Constitution, which provides for an arrested person’s right to be released on bond or bail on reasonable conditions unless there are compelling reasons to deny release.
Mwaura says their lawyer, Wandugi Karathe, advised them that the Sh700,000 cash bail was “not only inconsistent with the value of the alleged share” but also contrary to the constitutional requirement that bail terms be reasonable.
The applicants have told the court that they have complied with all conditions imposed since their release and have undertaken to abide by any alternative terms the court may impose if the bail is reviewed.
They are asking the court to substantially reduce the cash bail or replace it with other reasonable conditions.
Senior Principal Magistrate Caroline Mugo has granted the prosecution seven days to respond to the application.
The matter will be mentioned on September 11, 2026, for further directions.
The three are accused of conspiring to defraud Victoria Nyambura Karugu of her share in Mathara Holdings Limited by allegedly transferring it to Centurion Holdings Limited.
The alleged offence is said to have occurred on or about May 2, 2012, at an unknown place in Kenya.
Kabiu is separately charged with forging a share transfer form and allegedly presenting the forged document to the Director General of Business Registration Services.
Mwaura and Benjamin also face additional charges of allegedly giving false information to police, resulting in investigations being undertaken in circumstances they are accused of knowing did not warrant such investigations.
The three denied the charges before Chief Magistrate Dolphina Alego and were released on Sh700,000 cash bail each.
