KEY POINTS
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The court’s intervention in the shares’ sale.
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The legal challenges involving marital and financial claims.
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A reflection of the ongoing debt recovery and collateral disputes.
The sale of 75 million Britam Holdings shares, which are at the heart of a legal battle between Kenyan billionaire Peter Munga and Africa Banking Corporation (ABC Bank), has been temporarily placed on hold by the High Court in Nairobi. ABC Bank, ABC Capital, and the Central Depository and Settlement Corporation are prohibited from transferring or disposing of the shares until the case is settled in court, according to the ruling made by Justice Peter Mulwa on Monday.
Munga Britam dispute
Peter Munga’s wife, Rose Njambi Munga, made a valid argument that the shares might be jointly owned, Mulwa decided. The judge ruled, “I believe that the loss of the shares prior to the hearing would cause irreversible prejudice.” This action adds to the couple’s current legal battle over Britam shares connected to a bank loan, which is reportedly worth Ksh640 million ($5 million).
The 75 million Britam shares were pledged by Munga as collateral for loan facilities. In court, ABC Bank claimed that the stock was properly charged and that it was trying to collect $1.2 million and Ksh274 million ($2.1 million) in unpaid obligations. The lawsuit, according to the lender, was one of the Munga family’s several attempts to thwart debt recovery.
Munga, ABC Bank, ABC Capital, and the Central Depository and Settlement Corporation are named as defendants in the September 9 petition, which aims to prevent any sale or transfer of the shares. According to court records, between 2022 and 2024, Munga-controlled Equatorial Nut Processors borrowed Ksh882 million ($6.83 million) from ABC Bank to supply supplies to the World Food Programme, KEMSA–Global Fund, and the Education Ministry.
Munga Britam dispute halts share transfer
Much of Kenya’s contemporary banking industry was constructed by Peter Munga, who was born in Kangema in 1943. In the 1970s, he began working as a cooperative officer. In 1984, he established Equity Building Society, which subsequently evolved into Equity Bank Group, one of Africa’s biggest lenders with more than 21 million customers across six nations. Following his resignation as chairman in 2018, Munga concentrated on his stakes in Britam Holdings and Equatorial Nut Processors, of which he controls 92 percent.
According to Billionaire Africa, the legal issues facing Munga are not new. He was unable to stop ABC Bank from selling the same Britam shares at auction last year. A recent period of litigation and financial scrutiny was highlighted by his involvement in a separate issue earlier this year over Pioneer International School and a 75-acre lease connected to Del Monte Kenya Ltd.
