Stung by own personal experience of missing out on education owing to his family status, businessman Njenga Karume left substantial share of his wealth for education of bright children from poor backgrounds.
In documents forming a trust to run his vast business empire, Karume decreed that 5 per cent of annual net income of his business enterprises should be set aside for education of “bright but needy children”.
In the trust declaration document, which set up a trust to manage his vast business empire, Karume tasked the trustees to agree on a scheme “which may include the setting up of a foundation” to ensure his wishes came to pass.
Accordingly, in the list of beneficiaries of his wealth, Karume included needy children. Other beneficiaries included his wife, children, grandchildren and great grandchildren.
Under the trust’s control and operation are three holding companies – Jacaranda Holding Company, Karume Holding Limited and Cianda Holdings Limited – which controlled all the key businesses Karume was running at the time of his demise in 2012.
The 5 per cent of net income fund is among the projects which were held in abeyance following the ongoing multiple court processes challenging both the will and the trust.
According to a 2012 Price WaterHouse Coopers (PWC) audit report, almost all the businesses appear to have been doing badly at the time of Karume’s demise. Most of them had been scheduled for major overhaul and restructuring.
For example, the nine companies under the trust had borrowed a total of Sh1.3 billion by June 2010, most of the money advanced by Karume himself.
Separately in his will, Karume directed that a mausoleum and a library be built at an appropriate location near his burial site.
“I direct my executors to pay the expenses associated with my burial, construction of the mausoleum and library and the maintenance from my estate,” he said in the will.
He also hived off 7 acres of his Cianda Farm and donated the same to the Catholic archdiocese of Nairobi for the benefit of Njenga Karume Primary School and Cianda High School.
He also donated 3 acres to Sisters of the Immaculate Heart of Mary Mother of Christ and 1.75 acres to the Catholic Church.
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