Kibaki secrets: How ex-president directed his wealth be managed

Two days before Christmas in 2016, former President Emilio Mwai Kibaki penned his signature to a six-page document that sealed his wishes on how he wanted to pass his wealth to his generation.

With four strikes of a pen, Kenya's third president and an economist of repute mapped out how his earthly wealth will be increased by his children and his legacy name etched from one generation to another.

The Sunday Standard can exclusively reveal that Kibaki in his Will kept his children-in-law out of succession matrix and ordered that his wealth should be managed through a holding company.

Kibaki's Will, written three years after his exit from the government that he served for 10 years meticulously details his preferred interment place, his executors, specific gifts, the residues, how his grandchildren will inherit the wealth and even declared short-term arrangements on how his wealth would transition to a holding company.

Kibaki first wished that he would be buried in a Kibaki Family Mausoleum. Although he was Kenya's President, he tasked his family to construct his final resting place.

Kibaki died on April 21, aged 90.

"I declare that I wish for my mortal remains to be buried in a Kibaki Mausoleum to be constructed by my estate. I declare that I am domiciled in the Republic of Kenya, I wish this my Will to be governed and construed according to the laws of Republic of Kenya," the Will that is now filed before the High Court, Family Division in Nairobi read in part.

Kibaki's succession case was handled last by Justice Aggrey Muchelule who is now a Court of Appeal judge. In the Will, Kibaki appointed his children Judy Wanjiku, Jimmy Kibaki, David Kagai and Anthony Githinji as the executors.

To them, Kibaki said, he wanted them to work as one unit and not as independent executors.

"I appoint my children to be joint and not several executors and executrix of my Will," Kibaki said in the Will adding that he would refer to the four as his children. After declaring where he would be buried and who would manage his wealth, the other task was to give his earthly wealth.

Although he does not disclose how much he has accumulated in assets, shares and liquid money, Kibaki stated that he has gifted everything, other than estate debts, and anything sold prior to his death and government taxes and duties to his children.

"I give devise and bequeath pay or provide for my funeral and testamentary expenses and any debts owing by me and all duties payable out of my estate... All such expenses debts duties and legacies shall be primarily paid out of my personal and moveable estate," he said.

According to him, cash in bank which is under his sole name should be distributed equally and absolutely between the children.

At the same time, Kibaki directed that any identified amount of identified assets ought to be distributed according to the Will and memorandum which would addressed to the executors.

"If no memorandum shall exist then my executors shall not be required to make any distribution under this clause," Kibaki said in the will.

Kibaki also wished that his personal effects should be bequeathed to the Mwai Kibaki Foundation. According to the Will, the effects that include his personal papers may not be disposed by the foundation.

If the Mwai Kibaki Foundation will not have been established, he directed that his personal effects be given to any other charitable organisation that would be founded in his memory.

He continued: "If the foundation shall not be in existence at the time of my death then all such personal effects (including my personal papers) shall be bequeathed to any other charitable body that may be been set up in my memory as my executors may decide, failing to which to a charitable body to be established by my executors for these purposes."

Kibaki said the assets, personal effects and money that he had not gifted his children and which would remain after sorting out his debts and duties would be treated as residue and be transferred to a holding company.

According to Kibaki, his children and himself would be shareholders in the firm but upon his death, his shares would be evenly distributed to the children.

"If such holding company structure shall not be in place at the time of my death, then all of my interest in all of my residue shall be transferred in most tax efficient manner possible into the ownership of the holding company with each of my children holding an equal number of shares in the holding company," he said.

He, however, had a caveat, that executors will issue the shares only if each of his children will agree to be bound by a shareholding agreement.

Kibaki also directed that his estate should be shared along his bloodline. According to him, his children ought to pass the wealth to his grandchildren equally and not to any spouse or life partner.

He stated: "Where I have directed in my Will that any of my children should receive a benefit directly or through any trust arrangement from a certain asset and they have predeceased me or upon their demise following my own death, then any direct bloodline descendant of theirs (not spouses or life partner) shall receive their parents benefits, if more than one in equal shares."

In the interim, Kibaki added, his executors will hold in trust the residues on behalf of his children until when the holding company will be formed.

Kibaki belief in education is captured in a clause that he directed that the executors should pay for his children's fees. At the same time, he ordered the same for his grandchildren but did not make is mandatory.

Kibaki also gave the trustees powers to purchase stocks funds, shares, securities, invest in properties. However, he directed, no income that will be received will be treated as capital.

"In this Will, I have defined my children. Where I use the expression "child" it refers to any child or remoter issue of my children (whether natural or adopted)," he concluded.

Kibaki was among the administrators of his late wife Lucy Kibaki's wealth. She was estimated to be around Sh200 million.

Mama Lucy died at Bupa Cromwell Hospital in London, aged 80 on April 26, 2016.

Her estate comprised of prime properties in Mombasa, money in banks and shares in a blue chip company.

In addition to his, the heirs may be solidifying their count in the millionaires club.