Raila Odinga’s Stolen Presidency: Who is Stanley Murage?

Murage’s name has appeared in several Wikileaks cables but who is he?

Stanley Murage: Played a role in the Artur saga

When the Mount Kenya Mafia ring began to tighten itself around Kibaki, another key personality who soon moved close to the President was the then fifty-five-year old Kirinyaga born Mr. Stanley Karuthai Murage who entered the scene in October 2004. Murage was not just fished by Kibaki out of the dark waters of political obscurity. Moi had long noted his skills and appointed him Permanent Secretary in the Ministry of Transport in 1994 and then dropped him along with eleven other Permanent secretaries in a civil servant cutback in September 1999. When his friend Kibaki seized power, Murage was promoted to serve as Advisor and Permanent Secretary in charge of “Strategic Policy” in the Office of The President. Murage had also been appointed by Kibaki to serve in National Economic and Social Council.

When he entered State House, the first casualty who felt the real impact of his entry must have been Alfred Getonga who was sacked as Kibaki’s Personal Assistant amid media speculation that Murage was brought in to change the power equations at State House, which was, by then, dominated by the “Hurlingham group” that was allegedly headed by Kiraitu Murungi and Chris Murungaru. Murage’s appointment was also viewed as a counter to Francis Muthaura, Head of Public Service and Secretary to the Cabinet because of the duplicate nature of duties in relation to Murage’s new responsibilities at State House.

Murage is schooled in Building Economics and Quantity Surveying but quit his job as a Group Quantity Surveyor with the Kenyatta government in 1977 to look for greener pastures in business. He has been one of Kibaki’s trusted buddies and after Kibaki was sworn in as President, the role he has been playing in Kibaki’s life saw him scoop the coveted award of the “Chief of the Order of the Burning Spear.” Despite his background as a humble civil servant, Murage had several business interests across Kenya. His flagship was the Armstrong and Duncan Company, which specialized in fixing huge government and private sector contracts. Murage had good contacts with the Ndegwa Family, one of the families that owns Kenya and that was instrumental in helping Murage establish his business empire.

The advantage of having good contacts with the Ndegwas is that the family was close to Kibaki and any good contacts with them simply worked to Murage’s advantage, helping him cement the relationship between him and Kibaki in a symbiotic way. Still in the rank of proximity to the big shots, the new Presidential Advisor who had occupied State House in the person and personality of Murage was very close to the late Mr. James Kanyotu, the secretive Chief of Intelligence under the Moi dictatorship who passed away at Nairobi Hospital in January 2008. He is believed to have taken to the grave vital secrets that could have boosted the resolution of several mysterious deaths and assassinations of Kenyans including the assassination of the late JM Kariuki during the Kenyatta dictatorship and the assassination of Dr. Robert Ouko who is believed to have been killed by the Moi dictatorship.

With his crucial position, Murage needed backup from the likes of Kanyotu who was himself a veteran on Kenyan Intelligence. It is notable that Murage’s name popped up as a person who needed to be investigated following the scandal of the Artur brothers who masterminded an attack on The East African Standard Newspaper. According to information that came in the public limelight, the Artur brothers were hired thugs commissioned by the government while it is reported that they met President Kibaki at State House on several occasions in the process of planning the attack on the newspaper. Their presence and agenda in Kenya was blown by Raila Odinga and as the scandal unfolded through the media, Murage was one of the individuals who came into the spotlight thereby raising eyebrows as to the real role he was playing at State House. The Kirugi Commission that investigated the Artur brothers wrote that Murage:

…condoned the illegal activities of the two brothers. He should be prosecuted for the Standard Newspapers raid; banned from holding public office; investigated for his role in the illegal activities of the two brothers; further investigated together with the principal immigration officer for their involvement with the two brothers; [and] state his connection to the two brothers.133

Murage’s name had popped up early in the scandal, having been mentioned as having attended a secret night meeting at Michuki’s office at Harambee House together with CID Director Joseph Kamau to plan the raid on The Standard.134 The Standard reported that the said meeting took place hours before the attacks on the Standard Group Headquarters at I&M Bank Tower and the Likoni road printing Press.135 The connection between Murage and the Arturs was so serious that Lucy Kibaki, First Lady, was reported to have been unhappy with Murage because of his possible link to the two controversial men.

According to The Standard Report: Murage denied there was any truth in reports that the First Lady now believes the two ‘light-skinned’ men she saw him with at State House in mid-February were the same ones whose pictures the media splashed after the dramatic news conference by the foreigners at the Jomo Kenyatta International Airport’s VIP lounge last Monday.136 Murage is also known to have been a close friend of Mateere Keriri, former controller of State House who fell out with First lady Lucy Kibaki and who was later fired from State House at short notice when things got hot. Pundits viewed Kerri’s departure from State House as the result of clashes between Keriri and Murage, which later spilled over to Lucy Kibaki who had the final word at State House. Lucy routinely slapped people at State House and got away with it although sometimes she did it in front of cameras and got caught, creating sensational scandals in the media.

At State House, Murage was firmly aligned to the “Muthaiga group” composed of elderly friends of Kibaki, who were fighting the “Hurlingham group” that had kept the Muthaiga old men at bay as far as proximity to the President was concerned. When Mwiraria, Finance minister, was forced to tender his resignation following the explosion of the Anglo-Leasing scandal, Murage is the guy who is believed to have consulted with Karume and the President to install the forty-fouryear-old kid, Amos Kimunya, as the new Finance Minister, an appointment that also stamped the Muthaiga group’s authority at the decision-making table at State House. Kiraitu later called a press conference to declare that “I am not finished yet,”137 even though the Hurlingham group was clearly losing to the Muthaiga group.

When he arrived at State House, Murage took control of the Institution rapidly although it is reported that he had no specific job description. The extent to which he had penetrated the Kenya power machine through the President was exhibited when he was left with the task of being part of a huge structure that was to fix Kibaki’s re-election campaign, which, nevertheless, started very late, probably because the Mafia cartel understood that elections were going to be rigged and that there was no need of sending the President to sweat profusely in the terrible campaign heat when the job could be done easily at KICC.

Raila Odinga’s Stolen Presidency:  pges 76-78



  • Stanley Murage was implicated in the pyramid schemes that collapsed around 2007, giving Kenyan small investors a loss of KSH 35 billion. President Kibaki has never bothered to get into the root of these scams because his close allies were involved.

    The people who formed pyramid schemes in 2006 made billions of shillings by the time the organizations collapsed in 2007. The biggest pyramid scheme was called DECI and was founded by one George Donde and his sister, Mary Odinga. George Donde is brother to former Gem legislator, Joe Donde of the “Donde Bill.”

    Other pyramid schemes were run by former legislators Andrew Ligale and Njeru Ndwiga. Kibaki confidante, STANLEY MURAGE, has been implicated in pyramid schemes by a parliamentary taskforce headed by former Kitui legislator Francis Nyenze.

    In total, Kenyans lost over Kshs34 billion (US$435,897,000) within two years to at least 160 pyramid schemes. The Francis Nyenze Taskforce found that many families broke up as a result of losing their savings. At least 20 people are known to have committed suicide due to the losses. A DECI manager in Nairobi was tossed out the window of Union Towers on Moi Avenue by irate investors who wanted their money back. The manager died.

    Majority of the schemes were run by politicians and their allies. For this reason, there are hardly any criminal cases facing the perpetrators of the massive rip-off. There were other pyramid schemes initiated by entrepreneurs but the nature of Kenya is such that you cannot make money and “eat alone”.

    The masterminds of the pyramid schemes joined forces with politicians and senior police officers in order to cover their backs.


  • Some newspaper articles deemed too revealing and threatening by the Kibaki regime, amounted to raids on various “alternative media” outlets during his first term as president. Here are some from WEEKLY CITIZEN and you can read how deep Stanley Murage was involved.

    Kibaki Senile: Who Is Ruling Kenya?

    By Citizen Team Weekly Citizen, February 20th-26th, 2006

    The increasingly besieged regime of President Mwai Kibaki scarred by the Anglo- Leasing graft allegations that has seen some of its key pillars crumble is being run by one man, sources now claim. And that man, say the sources is not President Kibaki but his overbearing controversial PS for Strategic Policy Analysis Stanley Murage. Murage and his close allies at State House are said to have capitalized on the president’s lack of political foresight and at time ill-health to independently run the country without consultations with bureaucrats well-versed with political, social and economic basics involved in managing a state.

    Weekly Citizen, your favourite and Kenya’s most authoritative newspaper, has information it is Murage who drafted the statement that misled the President to the effect that former Education Minister Prof. George Saitoti and Energy Minister Kiraitu Murungi had accepted their resignations when in the true sense the had not and never tendered their resignations. Surprisingly, while accepting the “resignation” of the two ministers, Kibaki made a blunder in his statement announcing that Saitoti was the Minister for Education, Science and Technology, forgetting the docket of Science and Technology was in the hands of Dr. Noah Wekesa. It is such blunders that sometimes worry many Kenyans over the President’s capacity to absorb crisis.

    Sources in the know of goings-on at State House say, Prof. Saitoti and Murungi flatly refused to resign during a meeting with Kibaki. The meeting had been organized with Murage with full blessings of the old guards, namely John Michuki ( Internal Security), Njenga Karume (Defence) Amos Kimunya (Finance) and Francis Muthaura ( Head of the Civil Service and Secretary to the Cabinet). Of late detractors of the group refer to them as the “sleeping men”(SM). This is due to the fact they like dozing off into slumber even during public functions. Recently, Karume was in deep sleep at a function in Karen organized by the military. The picture was captured by the entire press and he was even unable to read the speech.

    In fact word has it, Kibaki at State House usually takes time to sleep in mid-morning and mid afternoon and that is why after the nap, he addresses the nation after 7 pm. The look of freshness arising from being well-rested is usually obvious to any keen observer as the president reads out his speeches in the evening. Since taking power in 2002, Kibaki has made it his unfailing habit to address the nation in the evening unlike former President Moi who used to make major announcements at 1 pm.
    That Kibaki may not be quite himself is further manifested by the fact that he appears not to know the number, names and positions of his entire cabinet. While in talks with a foreign ambassador sometimes back, Kibaki surprised those present when he said his vice-president Wamalwa Kijana was best suited to handle the issue. The President had forgotten that Wamalwa died two years ago and his vice-president is the embattled Moody Awori. At one time he is said to have referred to trade and industry minister Mukhisa Kituyi as Lugonzo, a former Nairobi mayor who died years ago. This appears to be a clear case of memory lapse. The diplomat had questioned the current state of famine in the country and measures taken to curb the situation.

    This is not the first time Kibaki has blundered in public. While on a tour of neighbouring country, the Head of State confused names of ministers accompanying him. It is whispered, in an effort to avoid introduction mix-up, one has to say his name in advance so the president can know who is who. According to sources, so bad is Kibaki’s memory lapse that he at times fails to recognize members of his immediate family (First Family). During the referendum vote in Othaya, the president was captured live unable to recognize the name of one of his sons, Kangai, and First Lady Lucy had to remind him. Prior to the referendum, the president had surprised Kenyans by claiming the copies of the draft constitution were for sale when in true sense they were given out freely. At State House, Kibaki is said to forget names of his staff apart that of his chief chef. He at times forgets confidential documents giving his handlers a hectic time in tracing them.

    Since the 2002 road accident that condemned him to a wheelchair and the mild stroke that struck him soon thereafter, President Kibaki’s health has been the subject of debate in many quarters. President Kibaki had to endure several months of poor health since the 2002 road accident and after taking over the reins of power in a historic hand-over ceremony. He was admitted to hospital with a blood clot in his leg after confinement in a wheelchair following the road accident. Although his medical handlers have on several instances assured Kenyans that his health is okay, political analysts say ever since the road accident and his subsequent admission to hospital for complication of high blood pressure, the President’s ability to discharge the duties of Head of State and at times resulting in memory lapse. Before the road accident that saw him suffer a fractured leg, arm and neck, President Kibaki was an astute politician whose oratory and grasp of national political events was at his finger tips although he is said to have been treated for cerebral aneurysm, a condition that causes disorders by weakening or enlargement of an artery or vein in the brain that can rapture or cause bleeding. The president had to undergo surgery to remove the aneurysm; something that left a lasting physical mark on his forehead, which observers explain, is the reason for the regular twitching of the muscles around the mouth, a characteristic common with the president of late. It is because of this complication, experts say, that caused the blood clot develop into his right leg that had been plastered after the accident, two factors that pinpoint to the mild stroke he had to subsequently suffer, paralyzing some functions such as body movement, which has been noticeable with the Kibaki. Although experts say that the duration of recovery depends on one’s age, general health and neurological conditions, President Kibaki showed remarkable improvement in his health but turns and twists of intrigues on the political landscape appear to have taken a toll on him.

    And with John Githongo’s earth shaking dossier on grand corruption at the heart of the government and mounting pressure on his close allies implicated in corruption to quit office, the president is left facing one of his most trying moments. His indecisiveness in taking prompt action has raised numerous questions at his style of managing state affairs, which leaves the question of whether the president is in control of things. Aware of Kibaki’s current state, PS Murage has effectively capitalized on it has fast become the behind the throne dreaded by government ministers. The mere mention of his name is said to make many ministers cower in fear. Murage is the man who has more say in the running of state affairs than the president himself.
    Murage himself a man who loves the bottle and does not keep secrets is known to boast that he is the seat of power and without him Kibaki cannot rule.

    To prove this point, in all strategic ministries, Murage has ensured that he has his person as PS or minister. After hounding out Kiraitu and Prof. Saitoti, the PS made sure his man Amos Kimunya moved to the plum Finance Ministry docket to replace dimunitive David Mwiraria while other ministers were said to in acting capacity. In the now influential ministry of Justice and Constitutional Affairs, Murage has Martha Karua as minister. Both Murage and Karua hail from Kirinyaga district. A directive to have prominent personalities surrender passports and firearms is said to be the brainchild of the influential PS now popularly known as “Godfather” in the corridors of power. In the Ministry of Energy, Murage’s blue-eyed boy is PS Patrick Nyoike. In fact Murage is linked to the poles tender scandal at Kenya Powe and Lighting. It is said the Tanzanian firm in the controversial tender was introduced to Murage by his long-time friend Samuel Gichuru, a former long-serving MD of KPLC. The relationship between Murage and Gichuru dates back to the reign of Moi when both were members of the Central Province Development Support Group (CPDSG). Hosea Kiplagat, Murage relationship roots can be traced to the KANU era when Kiplagat brokered his appointment as permanent secretary. At AG chambers Murage’s pointsman is Solicitor-General Muchemi Wanjuki. Inside sources say, Murage was instrumental in the removal of Alfred Getonga from State House as Kibaki’s Personal Assistant and does not want a replacement as he prefers to handle the docket himself.

    The PS is currently said to be working on a new look cabinet that will see a number of ministries merged. He is said not to get on well with Francis Muthaura. The other person Murage worked with but with a lot of suspicion is former head of the National Security Intelligence Service (NSIS) Brig.(rtd) Wilson Boinett. He is also known to have no time for Attorney General Amos Wako. He (Murage) is said to be fronting for Justice Samuel Bosire as the right person to replace the ever-smiling Wako.


    Stanley Murage: Kenya’s new godfather

    Our Reporter, Weekly Citizen 20th-26th February 2006

    In the history of presidential power brokers in Kenya, no one has ever occupied the position of power currently enjoyed by Stanley Murage, the State House-based PS for Strategic Policy Analysis. Murage and new Finance Minister Amos Kimunya are the second and third most powerful men of the final stretch of the Kibaki presidency. And given the fact that Kimunya was a popular chairman of the prestigious Muthaiga Golf Club the year President Kibaki, patron of the Kenya Golf Union and a member of the Muthaiga Golf Club, entered the State House, and also the fact that Murage is a very wealthy man, the new power elite around the presidency is being referred to as the Muthaiga Mafia. Murage’s position is unique because no power-broker of his impact and ambition has cultivated his position within State House itself. Kenya’s premier to power brokers have always been based outside State House in the cabinet, parliament or civil service.

    The Kenyatta era had Mbiyu Koinange, Dr. Njoroge Mungai and Charles Njonjo. The Moi era had Njonjo, G.G. Kariuki, Simeon Nyachae, Nicholas Biwott and Mark Too. The Kibaki passing-cloud era has had Dr. Chris Ndarathi Murungaru, David Mwiraria and Kiraitu Murungi before Murage made his masterstroke move and felled all of them in a three month period, beginning with Murungaru’s omission from the cabinet in December 2005. There have been State House-based powerbrokers but their operations have been behind-the- scenes to avoid overshadowing the president of members of the First Family. The first was the late Eliud Mathu in the Kenyatta era. Alfred Mwangi Getonga, who until last week was President Kibaki’s PA and Joshua Kulei of the Moi era was the last strong link of the Mt. Kenya Mafia to be broken by Murage. With Getonga gone, it is only a matter of time now before head of civil service and secretary to the cabinet Francis Muthaura also throws in the towel and Kenya Anti-Corruption boss Aaron Ringera is hounded out of his tenured office.

    Stanley K. Murage’s triumph has been complete. His role in the destruction of the Mt. Kenya Mafia was pivotal. If it was not for Murage, self-exiled former State House-based PS for Ethics and Governance John Githongo would not have been able to release his devastating with as much impact both locally and internationally as he has. It was Murage who quietly informed Githongo late last year that his dossiers addressed to President Kibaki on the subject of the Anglo- Leasing scams had disappeared from the President’s office and living quarters at State House, Nairobi.

    According to impeccable sources, First Lady Lucy Kibaki, who has a major stake in Equatorial Bank, which is adversely mentioned in Githongo’s dossier, Alfred Getong and three of the president’s children plotted the disappearance of copies of the Githongo dossier of November 25, 2005 from the president’s office and living quarters during the Christmas break. Murage, who was posted to State House in October 2004, noticed that copies of Githongo’s dossier in the president’s office at State House were missing and so he asked a number of State House staffers whose hiring he influenced and who answer only to him to trace copies of the same that the president had taken with him into his living quarters just before Christmas. Murage’s informers, who include State House cleaners, valets and kitchen staff reported to him the alarming news that the documents were nowhere to be found, not even in the refuse baskets from the president’s living quarters. Murage promptly informed Githongo about the development.

    Sometime in late December and full consultation with the president’s old friend Joe Wanjui, Njenga Karume, Father (rtd) George Muhoho, Nat Kangethe, Prof. Nick Wanjohi, and Solicitor General Wanjuki Muchemi, Murage told Githongo to go ahead and release the Anglo- Leasing scams dossier(s) as he had threatened to do. The expose knocked out Mwiraria. But not even Kenyans and leaders anticipated that the BBC World Service would take up the story and broadcast it to a global audience, thereby knocking out Murungaru, George Saitoti, Kiraitu, Getonga and (coming soon) Awori and Muthaura. But the seeds of Murage’s downfall are already present in his greatest moment of triumph. He will be forever remembered as Githongo’s point man inside State House who helped to fell the Mt. Kenya Mafia. Who is this man Murage and has he outmanoeuvred Kibaki’s own most loyal lieutenants from within the citadel of their own power?

    Murage hails from Kirinyaga where he was born on 18th of May 1950. A quantity surveyor, he served President Daniel arap Moi as a trusted permanent secretary for six years ( 1994-2000). During the same period he was an influential member of the boar of directors of Kenya Times Ltd, the then ruling party KANU’s media organ, a job secured for him on the intervention of three key pillars of the Moi regime: KANU Secretary General John Joseph Kamotho; the then Managing Director of the Kenya Power and Lighting Company Sam Gichuru and the then Chairman of the Cooperative Bank of Kenya Hosea Kiplagat, Moi’s favourite nephew. Today Murage, from his powerful perch at State House, has reduced all three men to his errand boys. Kamotho is the powerful Murage’s pointman in the Liberal Democratic Party (LDP) Gichuru provides Murage with tens of millions of shillings of allegedly “clean money” for “political work” in exchange for a continuing slowdown of his corruption-related cases and Kiplagat runs errands between Moi’s Kabarnet Gardens and Kabarak command posts.

    Murage has accumulated his immense powers inside Kibaki’s troubled State House by completely out-manoeuvering everybody that the president held dear to his hold on power. He has even isolated First Lady Lucy from the seat of power by ensuring that she is no longer allowed to the visit the place at night. He has destroyed Alfred Getonga and his network. And now the president is alone at State House with Stanley Murage and people vetted by the same Stanley Murage.

    What is Murage’s agenda?And what are his links to two other powerful Kirinyaga personalities: Matere Kereri and former Director of Intelligence James Kanyotu?

    As we went to press unconfirmed reports were emerging that a top anti-corruption judicial official who received a Sh. 5 million bribe in cash in the lobby of Nairobi’s Serena Hotel from one of Murage’s strange alliance. And then there is the mystery of what exactly Murage does and what his changing designation means. In a conversation with Weekly Citizen on Thursday last week, Murage insisted that his correct designation was Advisor to the President, Strategic Policy. But when he was appointed in October 2004, his designation was given as PS for Strategic Policy Analysis. Even the State House website has been changed to reflect this change. But no official announcement of a change in focus in Murage’s designation has ever been officially given.

  • Remember the Kenya Bus Service scam where millions got wasted? yes, Stanley Murage was mentioned as a major shareholder there. He is part of the old money controlling Kenya’s economy: he is a MR MONEYBAGS. He also featured in another damning Standard Newspaper story on Jan 8, 2005 titled: “Big money games that run Kenya’s politics”


    By Kamau Ngotho

    After a brief tactical retreat in the wake of the expose on Anglo-Leasing scandal mid last year, key figures in the Narc administration are back in the money games partly to enhance their business portfolio as well as to create a war chest ready for 2007 elections.

    The renewed boardroom shifts and intrigues have given rise to rival camps right inside State House competing for new business turfs or fighting to preserve existing ones.

    But a most interesting twist to it is the new-found working relationship between top money men of the Moi era and key members of the Kibaki administration.

    A most talked about illustration of the new business friendship is the deal that saw leading electrical instruments manufacturer East African Cables change hands from business magnate Naushad Merali to associates of President Kibaki.

    Equally interesting was the sale of the life-insurance portfolio of Alico Insurance Company to Heritage AII Insurance Company and the change of ownership of shares in the former mobile phone firm KenCell Communications Ltd, now Celtel Ltd.

    In the first deal in October last year, Merali, a business associate of retired President Moi, sold East African Cables to a little known company, Trans-Century Ltd. The board of the new company is chaired by a Mr Zephania Maina.

    A check at the registrar of companies showed that the new company is a subsidiary of Affiliated Business Contacts (ABCON), owned by Mr Eddy Njoroge, the managing director of the Kenya Electricity Generating Company (KenGen). Mr Njoroge is a long time associate of President Kibaki and key financier of Kibaki presidential campaigns since the 1992 election.

    The Sh300 million sale of the cable company could raise questions of conflict of interest as East African Cables is the leading manufacturer of electric cables, whose biggest consumer is KenGen and the sister company, Kenya Power and Lighting.

    Quick on the heels of the East African Cables deal was another where Alico Insurance Company sold its life-insurance portfolio worth Sh6 billion to Heritage AII Insurance.

    It is also around the same time when Merali purchased Vivendi Telecom International shares in KenCell at $230 million and sold them to Celtel the very same day for $250 million, making a cool profit of $20 million. It was followed by an announcement that Celtel would extend its reach in a roll-out project to be financed by a local consortium of financers, with the CFC Bank at the forefront.

    Absolutely nothing fishy in all that. However, it was not lost on pundits in business circles that the lists of shareholders and directors of Alico, Heritage AII, Celtel, and CFC Bank read almost the same.

    Two directors of Alico, P.K. Jani and H. Da Gama Rose, are also directors of Heritage AII and CFC Bank. Others in CFC Bank and Heritage AII, but not in Alico, are Mr Charles Njonjo and Mr J.C. Kulei.

    In Celtel, the principal shareholder is Sameer Investments where Naushad Merali and H. Da Gama Rose are directors. Jani, Kulei and Da Gama Rose are widely believed to represent business interests of retired President Moi.

    Sources contend that at the end of the day, money was quite probably changing hands from the left to the right.

    Local interests acquired the East African Cables from a London-based electric cable manufacturer, Delta Engineering Company, in October 2000. The new owner was a hurriedly constituted subsidiary of Sameer Investments Group called Yana Trading Company. At the time of the purchase, East African Cables assets were valued at Sh274 million. Yana Trading bought the company at a grossly undervalued price of Sh110 million.

    Business and political associations in Kenya have a long history. They began in early 1970s when key members of the Kenyatta government registered a private company by the name African Liason and Consulting Services.

    The new company’s shareholding read like a roll of who was who in Kenya at the time. Among the top names in the privately-owned company were then Vice-President Moi and Finance minister Mwai Kibaki. Moi appeared in the shareholder register in his own name while Kibaki had his shares held in trust by an old friend, Mr Nick Mugwandia Muriuki.

    Muriuki and President Kibaki had known each other since the early 1960s when they worked at the BP/Shell company on leaving college. So close were they that they double-dated two girls at Kambui Teachers College in Kiambu, and who ended up as their respective spouses. Kibaki’s date was Miss Lucy Muthoni whom he married in 1960.

    The idea to form the company was conceived at the Cabinet level in 1970 at the height of the government’s Africanisation project. It was to serve as a local competitor for government supply tenders and contracts. Before this, all contracts and tenders went to European and Asian companies.

    It is significant that interviews for the first chief executive of Africa Liason were conducted by a committee of the Cabinet, chaired by Moi. The company’s first chief executive was Mr Julius Gecau.

    He was poached from BAT where he was the personnel manager. He later became chief executive of the Kenya Power and Lighting Company.

    After that there was no looking back for Alico as it massively invested through purchase of shares in banks, insurance companies, car dealerships, real estate, manufacturing and farming.

    Other main shareholders in African Liason Company were then Attorney-General Charles Njonjo, head of civil service Geoffrey Kareithi and GSU commandant Ben Gethi. Others were the PS in charge of Defence, Mr Jeremiah Kiereini, and Central Bank Governor Duncan Ndegwa.

    In the footsteps of African Liason Company came Heri Limited, a publicly-owned company but whose shareholding read like a duplicate of African Liason’s. While Kibaki was listed by name in Heri’s shareholding, this time Moi preferred to remain in the shadows with his shares held in trust by a Mr Richard Khemoli.

    While the principal mover in the formation of the African Liason Company was the Cabinet itself, for Heri Limited the idea came from the family of car dealers D.T. Dobie. It is believed the Dobie family felt the need to form the company and invite into it the big names of the day as a way to ensure they got a piece of the cake from lucrative government contracts.

    Heri’s breakthrough came when it was awarded a contract to supply the Kenya Armed forces with Mercedes lorries in 1973.

    It is significant that next to the DT Dobie family, then PS in the Ministry of Defence, Mr Jeremiah Kiereini, now the chairman, Kenya Breweries, had the largest number of shareholding in Heri.

    If Africa Liason and Heri acted as the business cord that tied together different political operatives of the day, Naushad Merali appears to be the latter day cord that runs through the Kenyatta, Moi and now Kibaki business connections.

    Merali is with the Kenyatta family at the Commercial Bank of Africa where the later has majority shareholding, and at the First-American Bank.

    Merali is also the founder and main shareholder in the Equatorial Commercial Bank. Confidential sources at the Nairobi Stock Exchange have confirmed to The Standard that two senior Cabinet ministers in the Kibaki government bought substantive share-holding in Equatorial Bank mid last year.

    Reports that could not be independently confirmed are that late last year, Mr Merali sold to the Kibaki family a 500-hectare piece of land on the Nanyuki-Timau road. The land is next to Lewa ranch. A group associated with Cabinet ministers Christopher Murungaru and Kiraitu Murungi is also reported to has acquired significant interest in the 45,000 Lewa Conservancy from Mr Ian Craig. The later has for long fought behind curtains to have influence over the Kenya Wildlife Services.

    A signal that Merali, a formidable business feature of the Moi era, was not in the bad books of the big guns in Narc came in September last year when he was pictured at State House, Nairobi, handing over a Sh500,000 cheque to President Kibaki for the National Famine Relief Fund.

    It did not escape observers’ notice that whereas many donors to the fund – including those with bigger cheques than Merali’s – had been trooping to the Harambe House office of the Special Programmes minister Njenga Karume to hand in their donations, Merali went to State House.

    It was even more remarkable, given the fact that Kibaki, unlike his predecessor, has no time for cheque receiving, that Merali be the very first to be so honoured.

    Merali’s door to the corridors of power opened in 1983. At the time he was working as an accountant with Ryce Motors, when he registered a company by the name Sameer Investments, with himself as the managing director.

    The new company hit town with a storm when it immediately acquired majority shareholding in the then Firestone East Africa (1969) Ltd and re-named it Firestone Kenya Ltd.

    Besides Merali, the other two directors of Firestone were listed as James Kanyotu, then director of Security Intelligence and Mr F.J. Addley, then working for the law firm, Stratton and Kaplan. Lawyer Addley was retired President Moi’s nominee in many companies.

    The acquisition was not without controversy. It began with an April 1983 visit to Kenya by then vice-president of the US-based Firestone Tyre and Rubber company, Mr A.G. Kraemer. At the time the US based firm owned 51 per cent equity in Firestone East Africa. The rest of the shares (49 per cent) were owned by the Industrial Commercial Development Corporation (ICDC).

    While in Kenya, Kraemer made an announcement that his firm intended to sell its entire stake in Firestone East Africa to indigenous tyre dealers. Subsequently, then Firestone East Africa managing director Steve Fabian arranged for a consortium of five leading indigenous tyre dealers to purchase the shares from the US company.

    The consortium included Mutaratara tyres, Buckley Tyres, Kirinyaga African Rubber, Kenya Tyre Enterprises and New Tyre Enterprises.

    Upon negotiating the sale agreement with the American industrialist, the local consortium applied for foreign exchange from the Central Bank of Kenya in those days of controlled money regime.

    CBK rejected the forex application without giving any reasons as was required by law. Recalling the incident, the managing director of one of the bidding companies, Buckley tyres, Mr Samuel Magua says: “There was a strong reason to believe the CBK was ordered not to allocate us forex to buy Firestone. Our worst fears were confirmed when we learnt that the visiting American CEO had been to State House with Mr James Kanyotu, who ended up as a director in the new Firestone company.”

    The consortium of five was just about to head for the courts when the American firm announced it was selling its shares to Sameer, who already had the forex and a higher offer.

    Sameer’s acquisition of the 49 per cent shareholding by ICDC was to come in 1995 and in similar controversial circumstances. According to the 1995 report of the Auditor-General, Corporations, the now defunct Parastatal Reform Committee had demanded that ICDC offload its shares at the Nairobi Stock Exchange at Sh100 million, a fifth of their true value.

    Prior to the sale, Sameer Investments had placed pre-emptive rights on the ICDC shares to lock out competition. It acquired them and three years down the line, Sameer re-floated the same shares at the Nairobi Stock Exchange for Sh1.5 billion, effectively making a 1,500 per cent profit.

    That is the genius of Naushad Merali, who is described in the company website as the “Seer behind Sameer”.

    Perhaps that would partly explain why none of Kenya’s First families, past and present, wants to keep him far away from their business stables.

    The groups fighting for control of the money bags in Kibaki’s State House roughly fall into two groups: The Young Turks — an eager beaver generation spoiling for riches — and the Moustache Petes, the veterans of the old money group.

    The new money group comprises youthful sons of privilege also known as the St Mary’s Group as most of them are alumni of Nairobi’s Saint Mary’s School. The most high profile member of the group is long-serving private secretary to Kibaki, Mr Alfred Getonga.

    He is the son of a former Nairobi Town clerk, the late Simeon Getonga. Others in the group, but operating in the background, are two sons of the President, Jimmy and David, and their sister Judy Wanjiku.

    Away from State House, the foot soldiers of the new money group are Mr John Macharia, the managing director of Triple-A-Capital and son of businessman and media tycoon S.K. Macharia of Citizen Media Group, the chief executive of the City Hoppa bus company, Mr George Thuo, and Mr Francis Michuki, a director of the Windsor Golf and Country Club and son of Transport minister John Michuki.

    Acting as the shadowy point-men to the group are businessman Jimmy Wanjigi, a son of former Cabinet minister Maina Wanjigi, and a former top executive at Commercial Bank of Africa, Mr Victor Gitobu.

    Also believed to be allied to the Young Turks is National Security minister, Dr Chris Murungaru, and his PS, Mr David Mwangi. Transport minister John Michuki has also been playing ball from their side as can be deduced from the fact that he had given duty exemption to a company associated with his son in the cranes project which was to be financed through Triple-A-Capital.

    On the other hand, the old money Moustache Petes consist of old friends of the President, some going back to their days at Makerere in the late 1950s. Others in this category are golfing buddies from Muthaiga and all-time royals from the President’s Othaya home.

    Here we have University of Narobi chancellor Joe Wanjui, businessmen Eddy Njoroge, Nat Kang’ethe, Peter Kanyago, John Murenga, FTJ Nyamu, Duncan Ndegwa and Robert Gacheche, among others.

    Working harmoniously with this group are the old money chiefs of the Moi era, including, Merali, the newly appointed PS in the office of the President, Mr Stanley Murage, businessmen Karanja Kabage and Mr Manga Mugwe.

    Each man in the later group has a strong Moi-link. Murage is former PS for Transport in the Moi government. He is also a principal shareholder in the Kenya Bus Company alongside Mr Samuel Gichuru, Mr Kabage and a key figure in Moi’s State House, Mr Hoseah Kiplagat.

    Kabage is a player in his own right, having been chairman of the strategic Communication Commission of Kenya during the Moi administration. He was appointed to the position at the time when the commission had to draw up rules as well as referee entry into the immensely lucrative telecommunication sector.

    It is he who supervised the controversial licensing of a second mobile phone operator in 1999 and in which various factions in Moi’s State House were pitted against one another. Unable to decide which faction to grant the licence, Kabage eventually settled on a company associated with President Moi himself, Sameer Investments.

    Mr Manga Mugwe was another significant key player of the Moi era. He is the chief executive of the steel manufacturing firm, Morris & Co. An interesting name in the firm’s share-holding is lawyer H. Da Gama Rose.

    Mugwe had joined the company in the 1970s as a nominee of Ms Margaret Kenyattta, then Nairobi mayor. Ms Kenyatta later sold her stake to Mugwe. Throughout last year, Mugwe was in the news as the leader of the local consortium bidding for the third mobile telephone operator. Mugwe’s bid through the Econet Wireless company hit a snag when the licence granted was withdrawn three months after it was issued. It is believed that Mugwe, whose firm Morris & Co. has had trouble servicing its loans with both Kenya Commercial bank and the National Bank of Kenya, could have been acting on behalf of more financially stable operatives in both the Moi and Kibaki governments.

    It is significant that Mugwe had incorporated the government-associated Kenya Union of Co-operatives in his bid, which is the same group Mr Hoseah Kiplagat intended to use to bid for the second mobile operator six years ago.

    A Cabinet minister and an assistant minister are believed to have been among the influential names behind Mugwe’s intended venture into the cellphone industry.

    The controversy clouding the licensing of the City Hoppa bus company to compete with the Kenya Bus Services in Nairobi’s Central Business District is the best example of the bitter rivalry between the old and new money groups.

    On the side of City Hoppa company is Alfred Getonga, a close friend of Thuo, the bus company’s managing director. Thuo and Getonga certainly see each other on many other fronts.

    On the side of Kenya Bus company is of course, STANLEY MURAGE, a major share-holder in the 70-year-old transporter.

    The old money group has always held the new entrants with some measure of contempt. It is perhaps not without some history. For instance, in May 1982, a company associated with member of the old money group, Peter Kanyago, Unichem Ltd, took the extraordinary step of putting a newspaper disclaimer on its former employee, one Christopher Ndarathi Murungaru, on a disagreement over a small matter of Sh30,000.

    The younger wheeler-dealers have also not helped their cause, having been caught in a series of scandals, some which might result in prosecution.

    Their first major setback was when their key point man, businessman Jimmy Wanjigi was made to record a lengthy statement with the Kenya anti-Corruption Commission on the matter of the Anglo-Leasing Scandal.

    The second embarrassment came when information leaked that Transport and Communications minister Michuki had given an unqualified duty exemption to a company associated with his son, Francis, to import telecommunication equipment. Michuki was forced to make a hasty retreat.

    Months later, President Kibaki took away the communication docket from the larger ministry of Transport and Communication.

    At about the same time, the Triple-A-Capital of John Macharia was caught up in a murky Sh70 million insurance deal with the Nairobi City Council. The deal was cancelled when city councillors and the media screamed foul.

    Still in the same haste, the Triple-A-capital, which, in the words of it’s chief executive Macharia, was angling itself as “Kenya’s top finance-arranger” got into two more equally disastrous adventures.

    The first was an arrangement to pay off the Kenya Pipeline Company’s Sh1.6 billion debt and recover the same money from the parastatal at an exorbitant profit. The deal came a cropper when Ntonyiri MP Maoka Maore blew the whistle on the scheme he called “modern day shylocking.” Worse, it cost the KPC chief executive, Dr Shem Ochuodho, his job, a matter that has since been turned to the courts.

    Without batting an eyelid, Triple-A-Capital hopped into yet into another mega deal. This time it bid to “arrange” financing of a Sh5 billion project to upgrade Mombasa port. By now the company had overreached itself and the proposal was rejected outright.

    But much as people around President Kibaki may have a healthy appetite for the quick buck, many invariably agree that Kibaki himself has never been greedy, neither has he ever shown an inclination to use his position to amass property even though he has always been in a position to do so having been minister for Commerce, Finance, Vice President and now President.

    That said, however, some fault Kibaki for sometimes turning a blind eye when his friends are caught with their little hands in the cookie jar.

    A case in point was in 1980 when he was Vice President and minister for Finance. At the time, his friend of many years, Mr. F.T.J. Nyamu was the managing director, Kenya Re-insurance company, a parastatal under the ministry of Finance.

    In April that year, the government directed the Kenya Railways to put up decent houses for its workers living in the shanties of Muthurwa and Landi-Mawe railway quarters.

    Subsequently, the Kenya Railways set aside the land next to the Railway Training School in Nairobi South-B for the project. But hardly before the housing project could take off, a dummy company, Tass Properties, was hurriedly formed.

    The Kenya Railways, then under another of Kibaki’s buddies, Mr Davidson Ngini, sold the land set aside for the railway estate to a dummy company at only Sh690, 000. Two weeks later, the dummy company sold the same land to Nyamu’s Kenya Re-insurance at Sh14 million.

    Instead of the Kenya Railways building low-cost houses for its workers as the government had directed, the Kenya Re-insurance company constructed what is today Plainsview and Golden-gate estates and purported to sell the houses to railway workers living at Muthurwa and Landi-mawe.

    Of course it was a crazy joke as none of them could afford to buy the newly built houses. They ended up in the hands of anybody who could afford to pay.

    The ministry of Finance never bothered to find out who made Sh13 million — buying railway land for Sh690,000 and selling it to another parastatal for Sh14 million in just a fortnight.

    Nyamu and Kibaki own Finance House, a prestigious address in the central business district. The family company that manages Kibaki’s businesses, Lucia Limited, is housed at Finance House.

    Another of Kibaki’s friends, businessman, Nat Kangethe of Saatchi & Saatchi Associates, was the finance director at the Kenya Meat Commission when it collapsed.

    During that time, KMC entered into a queer contract with a dummy company called Halal Ltd to construct an abbatoir for the company at Ngong. According to the 1978 Auditor-General’s report, no abbatoir was constructed even after the government poured Sh50 million into the project.

    The dummy company and its sole director, one Mohamed Yusuf have never been heard of ever since.

    Though Kibaki is not in the same wealth league as his two predecessors, he too has had an interesting motley of business associates: He is with Mr Nicholas Biwott in the Deacons chain of clothes shops now re-named Woolsworth.

    He is with Mr Charles Njonjo in Heri Ltd and is with Dr Njoroge Mungai in a real estate firm that owns, among others, the Union Towers Building on Moi Avenue, Paramount Plaza and the Marple Courts in Milimani.

    A curious shareholder in the real estate company is Mr. P. Gidmooal who in some instances is a nominee for retired President Moi. Kibaki is also with Mr Chris Kirubi in the International Life House and Mr James Kanyotu in Dolphin Ltd, a real estate company with prime investments at the coast.

    The directors are listed at Mr John Murenga and Ms. J W Kibaki.

    In Kenyan politics and big business, you get the strangest of bedfellows.


  • The looting of Kenya by Kenyatta, Moi and Kibaki and cronies, is the reason why Moi and Kibaki must retain power through silly leaders like Uhuru Kenyatta and Ruto who shall maintain the status quo. Kenya had high hopes of recovering stolen money that was stashed abroad, yet Kibaki never bothered to pursue the issue.

    New hope for Kenya’s stolen billions has become hopeless: http://www.youtube.com/watch?v=6to2x7Z0QTc

  • Murage accumulated his immense powers inside Kibaki’s troubled State House by completely out-manoeuvering everybody that the president held dear to hold on to power. He isolated First Lady Lucy from the seat of power by ensuring that she is no longer allowed to visit the place at night. He destroyed Alfred Getonga and his network. And then president Kibaki was left alone at State House with Stanley Murage and people vetted by the same Stanley Murage.

  • Stanley Murage knew everything about the Armenian brothers and their dirty acts linked to car-jacking and drug trafficking in Kenya. He was very close to Mary Wambui Kibaki and that’s why Lucy Kibaki got pissed off and managed to get him fired:

    How Top Operative Fought for Armenians

    The East African Standard (Nairobi)
    June 12, 2006

    By Ben Agina And Cyrus Ombati

    On Sunday, it emerged there was a battle of wits as top police officers were bombarded with calls from the powerful political operative through proxies.

    A top officer privy to the goings-on said his men were threatened with unexplained consequences from above as they rushed to deport the brothers.

    And, our source informed us, the decision to deport the duo – Artur Margaryan and Artur Sargasyan – was actually mooted and pushed through by the Commissioner of Police, Maj-Gen Hussein Ali.

    The powerful individual was incensed that the two foreigners would not be allowed back into the country, and made frantic efforts to scuttle the deportation. The operative made several calls to senior Government officials in the hope that they would shoot down Ali’s decision to have the Armenians kicked out of Kenya for good.

    The Standard learnt that the political operative had actually bought first class return air tickets to Dubai for the two, and wanted them left to fly out and come back when things cooled down. Ali is said to have brushed off the demand, and instead secured a third class one-way air ticket to Dubai for the duo.

    Police hit another hitch while processing the foreigners’ papers when they (Armenians) suddenly claimed they had lost their passports.

    Gun stand-off at airport

    Since civil aviation regulations require individuals travelling out of a country to possess a passport, police had to race against time to process abstracts for Margaryan and Sargasyan, before rushing to the Immigration offices for the issuance of temporary passports to the brothers.

    The Armenian brothers have been at the centre of controversy since they broke into the limelight in March through a revelation by Langata MP Raila Odinga that there were mercenaries in the country. The brothers defended themselves at various press conferences, arguing that they were genuine businessmen keen on investing in real estate and manufacturing.

    They are also suspected to have had a hand in the March 2 raid at the Standard Group offices at I&M Bank Tower on Kenyatta Avenue and Likoni Road, Nairobi. The raid caused considerable havoc after computers were carted away, the day’s newspapers burnt and the printing plant and KTN transmission unit vandalised.

    In the latest saga, the brothers caused a stir at the Jomo Kenyatta International Airport, Nairobi, on Thursday night when they went to receive their visitors and resisted attempts to have their luggage checked by Customs officers. They snatched the luggage and after a gun stand-off with security officials, sped off with the police in hot pursuit. There was another stand-off at their leafy Runda residence before police eventually brought down the gate and arrested them. They were held in custody until Friday evening, when they were deported.

    President was informed

    Our source, who was privy to the Friday drama, says Ali decided that the deportation was the best option because he feared taking the Armenian brothers to court would be futile as they were likely to use their influential associates to frustrate the course of justice.

    “Ali and the officials felt that if they (Armenians) were taken to court, the case could drag on for years, leaving the brothers to go about their business in town,” our source revealed.

    According to the police official, the political operative trying to shield the duo did not know the President was being informed on minute-by-minute progress of the deportation plans. The Internal Security minister John Michuki and Head of Civil Service Ambassador Francis Muthaura had also endorsed the Commissioner’s recommendation.

    On Sunday, Justice and Constitutional Affairs minister Martha Karua defended the decision to deport the Armenians. Speaking in Nakuru, the minister urged Kenyans to be patient as police investigate the activities of the Arturs and their alleged link to senior officials in President Kibaki’s administration.

    A Parliamentary departmental committee also got into the fray, saying it wanted to establish whether any State House official shielded the Armenian brothers from investigations. The Committee on Legal Affairs and Administration of Justice chairman Paul Muite said his team believed there were influential officials “high up in Government” who protected the two foreigners.

    Muite said it was clear Government officials had been frustrating police efforts to search the Armenians’ luxury house in Runda.

    “We want to see this State House connection they seem to have been enjoying,” he told journalists at the Holy Eucharist Catholic Church, King’eero, Kiambu, shortly after mass.

    State House official’s name invoked

    He said his committee would meet on Monday to issue summons to top Government officials, including minister Michuki and the Permanent Secretary in charge of Policy Analysis at State House, Mr Stanley Murage, to explain what they knew about the Armenian brothers.

    Others to be summoned are Narc activist Mary Wambui and daughter Winfred Wambui, CID boss Joseph Kamau and the Commissioner of Police.

    In trying to have the deportation orders quashed, The Standard was informed, the powerful individual invoked the name of a senior State House official.

    “The Police Commissioner was very firm on this. He even asked the proxy to tell the powerful individual that the decision to deport the Armenians was final,” said the source.

    It also emerged that the letters identifying the Artur brothers as deputy police commissioners could have been issued by the Criminal Investigations Department. But speaking from Dubai on Sunday, Margaryan denied the claims, saying police may have planted them in his house.

    “The police came to my house and picked several documents including my pictures. They may have forged the letters of appointments,” he said.

    At the same time, Opposition Chief Whip Siakago MP Justin Muturi said Kenyans should demand that the Government steps down for taking their lives for granted.

    “This government is risking the lives of Kenyans by allowing dubious characters to have access of our airports,” he said.

  • Buddy, you call your book that? I thought that with all the evidence out there you should have found it neccessary to get your book unbanned in Kenya.

    I suggest that you reverse the title to something like ‘The elections were really stolen. I think with such an honest title the book would sell like a hot cake. Or what do ya think?

    KSB: Great idea! The book is available online regardless of the ban in Kenya. Even Mubarack could not beat technology.

  • Mwaniki Kigotho (mukuru-nyeri)

    These Thieving lots cannot and should not be entrusted with treasury!

    Nyeri couple accused of theft ejected from home .
    Saturday, 12 March 2011 00:03 BY WAMBUGU KANYI . THROWN OUT: Belongings of a couple who were forcibly ejected by Kamuyu villagers.
    A couple suspected to be thieves were yesterday ejected from Kamuyu village in Nyeri Central district. Over 200 villagers stormed the home of Bernard Matu, 33 and Rebecca Wangui, 32 and demanded to know when the couple would stop terrorising them by breaking into their houses and stealing household goods. Matu had left the home at dawn and was nowhere to be found in the village.Villagers said he left for town to sell sufurias that they had stolen.

    The villagers accused the couple for stealing 60 hens, one goat, 180 assorted clothes, 280 sufurias, 30 pairs of shoes and 72 pieces of timber among other things, in the last three months they have been living in the village.

    A resident Maina Mwangi claimed that the couple steal chickens from the next door neighbours and eat them. He said they stole and slaughtered the goat inside their one roomed house.

    The couple was also accused of stealing wet clothes from clothelines.“They will not sleep in this village anymore, we are tired of them. They must either run away from here or we kill them,” shouted one villager.

    They claimed the couple had been chased away from Tetu district over similar allegations. The villagers vowed to lynch Matu if he returned to the village.

    Wangui however denied all the allegations saying she was not aware her husband was a thief.She said they haven’t

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