From illness to unpaid bills and court case: Inside Gen Karangi's crumbling empire

On January 24, 2024, retired General Julius Karangi felt dizzy and experienced sudden stiffness. He was inspecting his vast farm in Kiganjo, Nyeri, accompanied by two engineers and his personal assistant. It was 6.14pm, as confirmed by Edwin Kimani, because he had just sent money through M-Pesa to his daughter.

“It was very chilly that evening, and we had spent the entire day with the General. All other contractors had left and we were just the four of us walking around the expansive farm with him. All of a sudden, a gust of wind blew and I saw the General stiffen, jerk his head backwards and lose balance,” says Kimani.

Together with another engineer, Arthur Omondi, and the General’s personal assistant, David Waweru, they helped Gen Karangi to a chair. His dark Range Rover model P38A was swiftly brought to where they were. To the surprise of the gathered group, the General stood up, walked to the car and drove himself away.

The next day, an army helicopter from Nanyuki Military Base flew to the General’s farm with medics aboard and carried out a medical check. Satisfied that he was okay, they left and declared him in good health.

“When we met again after two weeks, the General seemed to be in good health, but everyone noticed he was forgetting things,” says Omondi.

The forgetfulness was notable because every contractor knew the General never referred to any paperwork during meetings.

“An issue would arise and the General would remember when he paid you a year ago — the exact date, the exact amount and how much he owed you. Not a rounded-off figure, but up to the last coin. And he knew all that information off the top of his head. When we met again after another two weeks, he had completely forgotten a lot of things, and thereafter, we were told he had been taken to the UK for treatment.”

When he retired as head of the army in 2015, Gen Karangi envisioned a busy retirement life. Not one to sit idly reminiscing about his military days to bored grandchildren, the General set in place plans to build a world-class abattoir that could handle 1,500 head of cattle a day.

The massive multi-billion-shilling slaughterhouse was a large-scale export-grade facility requiring advanced automation, strict hygiene protocols and comprehensive infrastructure. The abattoir had entirely separate processing lines for pigs, goats, sheep, cattle and poultry, with the lairage holding over 2,250 cattle. The high-speed cattle line utilised automated systems including pneumatic stunning, elevated bleeding rails, vertical hide pullers and evisceration conveyors.

The plan progressed well and the General had already obtained European Union and UAE certifications for exports before he fell ill.

Julius Maina, who is owed Sh70 million, says he had never disagreed with Gen Karangi. “We worked very well together. We could agree on something and he would pay promptly, and in cash. In fact, during our last meeting, he said he wanted a discount so that he could clear the final balance. We agreed on the discount and shook hands. The General is a perfect gentleman.”

Engineer Omondi says he supplied a weighbridge and weighing scales worth millions and has so far been paid half the amount. His balance is Sh7.9 million. “The General is one man I enjoyed working for. He was very knowledgeable and had an almost supernatural memory. Anything you discussed, he could remember, no matter how tiny the details were. I can’t go back to pick the things I delivered, and I also have suppliers to pay. The General had a great vision.”

Another engineer, who was a consultant, says he is owed Sh3.5 million.

“I have no issue with the General at all. He is an honourable man who fulfilled his promises once you shook hands and agreed on an issue. We had no written agreement, but he had a sharp memory and knew how much I am owed and how much he has paid me. In fact, many people who worked for him had no written agreement. It was just his word. And his word was good enough,” says the engineer, who did not want to be named because of the prominent nature of his work.

Other suppliers have gone to court to find legal ways of getting paid their money from Karangi’s family. One camp is led by lawyer Frank Omenya and the other has taken the services of Danstan Omari. In court documents in the possession of The Standard, filed before the High Court in Nyeri, the case pits Boiler Consortium Africa Ltd against three defendants: Knightwood Ltd, retired Gen Karangi (trading as Kamatongu Technical Farm) and Meadows Food Processors Ltd.

All three companies are owned by Gen Karangi. Boiler Consortium alleges a series of breached contracts spanning from 2021 to 2024. According to the documents, the business relationship began when Gen Karangi was introduced to the plaintiff in 2021 to construct a modern slaughterhouse and meat processing plant.

The suit details nine separate contracts for the supply and installation of boiler systems and associated equipment. The first agreement, dated April 19, 2021, was with Kamatongu Technical Farm for a steam boiler, header, tanks and pipework valued at Sh18.6 million. Subsequent contracts were signed with Knightwood Ltd and Meadows Food Processors Ltd for various projects, including a steam boiler economiser (Sh7 million), a standby LDO boiler (Sh30.7 million) and extensive steam pipework systems.

A significant contract with Meadows Food Processors Ltd on October 30, 2023, was for additional steam pipework and service-point equipment costing Sh67.9 million. Other listed supplies include a smoker oven door (Sh1.99 million), automated sludge and water pumps (totalling Sh18.4 million) and steam-powered laundry equipment (Sh10.35 million).

Boiler Consortium states that all contractual works were completed satisfactorily, but substantial balances remain unpaid. The company claims the Karangi agents summoned them for account reconciliations but failed to commit to payment despite being provided with all necessary documentation. A formal demand letter dated November 13, 2024, was allegedly ignored, leading to the lawsuit.

While the plaint notes that a full statement of account with exact figures is to be finalised, a separate document in the court file lists outstanding amounts totalling approximately Sh90.36 million.

Rogo Builders & Civil Engineering Ltd has also filed a suit claiming Sh39.86 million in unpaid dues from the same trio of defendants. Other firms, including Cool Solutions, Sign Compressed Air, a water purification company and Civil Engineering Ltd, are also demanding payment. The total amount owed stands at about Sh250 million.

Upon falling ill, Gen Karangi, in WhatsApp communication to consultants, contractors and suppliers, said he was away in the UK but asked that work continue, saying he had mandated a close friend to oversee payments.

However, correspondence from November 2024 reveals a complete breakdown between contractors and the family. A letter from Meadows Food Processors disputes completion of boiler works, while an urgent plea for payment from a consortium of subcontractors warned of a “full-blown financial crisis”.

When the Standard contacted Gen Karangi’s daughter, Celestine Mugambi, to get the family’s side of the story, she listened to our questions and said she has no idea what we were talking about. Four phone calls were also made to the slaughterhouse manager, Claire Kariuki, who picked on our fifth attempt to call. She listened to our questions and said she would call back.

A decorated military officer, Julius Karangi, joined the Kenya Air Force in 1973. He trained as a cadet in the United Kingdom and was commissioned as an officer in 1974. He qualified as a flight navigator in October 1975 and was assigned to the Flying Wing of the Kenya Air Force. In1995 he was Commander of Moi Airbase. In 1997, Karangi was appointed Commander of the Kenya Air Force Logistics Command, and a year later, promoted to Chief of Procurement of the army.

A year later, he was appointed Head of training, doctrine and procurement at the office of the Assistant Chief of Defence Forces and after one year, became Commandant of the Defence Staff College. He stayed in that post for three years until 2003, when he was appointed Commander of the Kenya Air Force. Two years later, in 2005, he was promoted to Vice Chief of Defence Forcebefore being appointed Chief of the General Staffin 2011.