Former AG's sons seek reduction of bail in fraud case

Jane Wangechi Kabiu alias Jane Kabiu Gitau, Eric Mwaura Karugu and Benjamin Githara Karugu are asking the Milimani Law Courts to review the bail terms, arguing that the amount is excessive and disproportionate to the value of the disputed share.

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 contend that the disputed share is valued at Ksh.100, making the Ksh.700,000 cash bail unreasonable.

“From the share transfer document, the value of the said share is Ksh.100,” Mwaura states.

He further claims that Victoria did not lose ownership of the disputed share, arguing that it was only transferred from one company to another while remaining 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 further tell the court that they had to rely on friends and relatives to raise the Ksh.700,000 each after they were arrested and detained.

“With the strenuous efforts all the accused were able to raise the cash and made the deposits,” Mwaura states.

They now say those who assisted them financially are demanding repayment, making it difficult for them to maintain the bail amount.

“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 accused argue that the bail terms should be guided by Article 49 of the Constitution, which guarantees an arrested person the right to bail or bond on reasonable conditions unless there are compelling reasons to deny release.

According to Mwaura, their lawyer Wandugi Karathe advised them that the Ksh.700,000 cash bail was “not only inconsistent with the value of the alleged share” but also contrary to the constitutional requirement that bail conditions be reasonable.

The applicants say they have complied with all the conditions imposed by the court since their release and have undertaken to continue complying with any conditions imposed if the bail is reviewed.

They are asking the court to substantially reduce the cash bail or impose alternative reasonable conditions.

The application was placed before Senior Principal Magistrate Caroline Mugo, who granted the prosecution seven days to respond.

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.

Jane Kabiu is separately charged with forging a share transfer form and allegedly presenting the forged document to the Director General of Business Registration Services.

Eric Mwaura Karugu and Benjamin Githara Karugu 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 a cash bail of Ksh.700,000 each.