Two sons of former Attorney-General James Boro Karugu and a company secretary have returned to court seeking a reduction of the Sh700,000 cash bail imposed on each of them in a case involving the alleged fraudulent transfer of their sister’s shareholding. Eric Mwaura Karugu, Benjamin Githara Karugu and Jane Wangechi Kabiu alias Jane Kabiu Gitau argue that the bail amount is excessive and disproportionate, claiming the share at the centre of the criminal case is valued at only Sh100.
In an application filed before the Milimani Law Courts, the three want the court to substantially reduce the cash bail or impose alternative reasonable bond terms. They are facing charges arising from the alleged fraudulent transfer of one ordinary share belonging to Victoria Nyambura Karugu from Mathara Holdings Limited to Centurion Holdings Limited.
In an affidavit sworn on behalf of the applicants, Eric Mwaura says the value indicated on the disputed share transfer document is Sh100. “From the share transfer document the value of the said share is Ksh100,” he states. Mwaura further argues that Victoria did not lose ownership of the share, claiming it was merely moved 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 accused also say they struggled to raise the Sh700,000 cash bail each following their arrest and detention and were forced to seek financial assistance from friends and relatives. They say the people who helped raise the money are now 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 states. The three argue that Article 49 of the Constitution guarantees accused persons the right to reasonable bail or bond conditions unless compelling reasons exist to deny them release. They say they have complied with all the conditions imposed by the court since their release and have undertaken to continue attending court and complying with any conditions that may be imposed.
Their lawyer, Wandugi Karathe, argues that the Sh700,000 cash bail is inconsistent with the value of the share forming the basis of the charges and does not meet the constitutional requirement for reasonable bail terms. The application came before Senior Principal Magistrate Caroline Mugo, who gave the prosecution seven days to file its response.
The matter will be mentioned on September 11, 2026, for further directions. The three had earlier denied the charges before Chief Magistrate Dolphina Alego and were each released on Sh700,000 cash bail. The prosecution alleges that they conspired to defraud Victoria of her share in Mathara Holdings Limited by transferring it to Centurion Holdings Limited on or about May 2, 2012.
Jane Kabiu is separately accused of forging a share transfer form and presenting the alleged forged document to the Director General of Business Registration Services. Eric and Benjamin also face separate charges of allegedly giving false information to police, resulting in investigations being undertaken in circumstances the prosecution claims they knew did not warrant such investigations. All three have denied the charges.
