Two sons of former Attorney General James Karugu have been charged with multiple offenses related to an alleged fraudulent transfer of company shares.
The accused, Jane Wangechi, Eric Karugu, and Benjamin Karugu, appeared in court on Tuesday to face charges including conspiracy to defraud, forgery, uttering false documents, and giving false information to a public servant.
The three accused individuals pleaded not guilty to all charges. The court set bond terms for each of them, granting a bond of Sh1.5 million with two sureties of the same amount. Alternatively, they could pay a cash bail of Sh700,000. The court also ordered the accused to deposit their passports in court until the case is concluded.
The defense had requested to delay the plea-taking, but the court rejected this request, insisting that the case proceed. A pretrial date was set for January 20, 2026.
According to the charge sheet, the three are accused of conspiring to defraud Victoria Nyambura Karugu, their sister, of her shares in Mathara Holding Limited.
The charges state that on May 2, 2012, the accused conspired to fraudulently transfer one ordinary share from Mathara Holding Limited to Centurion Holding Limited, without the consent of Victoria Nyambura Karugu.
Victoria Nyambura Karugu is listed as the complainant in the case. The prosecution plans to call several witnesses, including Victoria, a document examiner, investigating officer Peter Ouma, and other witnesses who have yet to be disclosed.
In addition to the conspiracy charges, the accused are also facing charges of forgery and presenting false documents. The prosecution claims that the accused knowingly submitted documents that contained false information.
The case dates back to earlier proceedings that were delayed because the suspects failed to appear in court despite being summoned by investigators. On December 9, the prosecution informed the court that the accused had been properly served with summons, but they failed to attend the hearing.
Senior Principal Magistrate Dolphina Alego issued new summons to ensure the accused attended court, clarifying that these were not arrest warrants. The case was scheduled for mention to confirm their attendance.
During earlier court appearances, the defense explained that two of the accused were absent due to medical reasons, with one being diagnosed with Covid-19 and bronchitis, while the other was hospitalized for hypertension.
However, the prosecution disputed these claims, arguing that the medical documents provided did not explain the severity of the illnesses.
The prosecution requested that the medical documents be verified by the investigating officer. The court allowed additional time for this verification and then directed the accused to appear in court on Tuesday.
With all three defendants present in court, the magistrate proceeded with the case and set bond terms. The case will continue with the pretrial scheduled for January 2026, as investigations into the alleged fraudulent activities continue.
