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Kenyan tycoon Peter Munga has prevailed in a legal battle that has lingered for more than a decade. The High Court in Nairobi has dismissed a Ksh150 million ($1.2 million) claim linked to an alleged oral agreement over the sale of 3 million shares in TransCentury Limited, bringing closure to a case that has shadowed one of Kenya’s most respected business figures for 14 years.
Justice Njoki Mwangi ruled that the verbal contract made in 2011 between Munga and businessman Joseph Muturi Kamau was “null, void and unenforceable.” The court further ordered Kamau and his company, Bethany Vineyards Limited, to refund Ksh42.9 million ($332,000) that Munga had used to settle their loan with Equity Bank, within 45 days. They were also directed to pay Ksh2 million ($15,500) in damages for misrepresentation.
Background of the case
The case originated in 2010, when Bethany Vineyards borrowed Ksh40 million ($309,500) from Equity Bank, using three million TCL shares as collateral. Kamau later claimed that he sold the shares to Munga at Ksh50 ($0.40) apiece, with an understanding that Munga would clear the loan and pay the remaining balance.
After Munga cleared the debt, Kamau alleged that the balance was withheld, leading him to sue both Munga and Equity Bank in 2011. The court’s decision effectively brings the long-standing dispute to a close, coming at a time when TransCentury remains under receivership and suspended from trading on the Nairobi Securities Exchange.
Munga’s expanding business footprint
At 81, Munga remains one of Kenya’s most respected business figures. He founded Equity Bank Group in 1984 with just Ksh5,000 ($100) — a move that reshaped Kenya’s banking landscape. Over the decades, he has diversified his investments, holding stakes in Kakuzi PLC, Britam Holdings, HF Group, Equatorial Nut Processors, Freshco Seeds, and Pioneer International University.
Earlier this year, Munga expanded his holding in Equity Group by purchasing additional shares worth Ksh166.2 million ($1.3 million), lifting his stake to 13.21 million shares. In July, he partnered with U.S.-based Everstrong Capital on a $3.62 billion toll road project, one of the largest privately funded infrastructure developments in Kenya’s history — underscoring his continued influence in the country’s economic sector.
