Kenyan tycoon Peter Munga’s wife stops Britam share sale

The High Court in Nairobi has stopped a planned sale of 75 million Britam Holdings shares that sit at the center of a dispute between Kenyan businessman Peter Munga and Africa Banking Corporation (ABC Bank). 

Justice Peter Mulwa issued a temporary injunction restraining ABC Bank, ABC Capital and the Central Depository and Settlement Corporation from transferring or disposing of the stock until the case is heard. The judge said Rose Njambi Munga, the businessman’s wife, had shown a legitimate claim that the shares may be jointly owned. 

“I find that the loss of the shares before the hearing would occasion irreparable prejudice,” Mulwa wrote. Recently, it was reported that Peter Munga was in a Ksh640 million ($5 million) legal fight with his wife over Britam shares tied to a bank loan dispute.

Matrimonial claim vs bank recovery 

Munga pledged the 75 million Britam shares as security for credit facilities. ABC Bank told the court the stock was legally charged and that it moved to recover unpaid debts of Ksh274 million ($2.1 million) and $1.2 million after he fell into arrears. The lender also said the case was the latest in repeated litigation by the Munga family to block recovery. 

Rose Munga argued the shares were acquired during marriage and therefore could not be pledged without her consent under the Matrimonial Property Act. She said 25 million shares are in her own name and the remaining 50 million, in her husband’s name, were bought at the same time and should also be treated as jointly owned. 

The judge ordered Rose to deposit Ksh100 million in a joint interest-earning account as security. The injunction freezes any dealings until the court decides whether the 50 million shares registered to Munga qualify as matrimonial assets. 

A banking figure back in court

Born in 1943, Munga started his career as a cooperative officer before founding Equity Building Society in 1984 to serve small traders and farmers. It later grew into Equity Group, one of Africa’s biggest banks. Last month, he won a Ksh150 million ($1.2 million) TransCentury share dispute, closing a 14-year battle.

After stepping down as chairman in 2018, he focused on his stake in Equatorial Nut Processors and investments, including Britam. This year he lost one court fight involving ABC Bank and the same shares, and he was drawn into another case involving Pioneer International School and a 75-acre lease tied to Del Monte Kenya.