Peter Munga, the billionaire founder of Equity Bank Group, is once again in court, but this time, the challenge comes from within his own family. His wife, Rose Njambi Munga, has filed a lawsuit against him and ABC Bank, opening a new chapter in a long-running battle over loans, collateral, and one of his most valuable assets: a multibillion-shilling stake in Britam Holdings Plc.
From Banking Icon to Financial Battles
Born in 1943 in Kangema, Central Kenya, Munga built Equity Bank from a rural cooperative society into Africa’s largest banking group by customer base, serving more than 21 million clients today. He retired as group chairman in 2018, taking home a Sh50 million gratuity, before diversifying into agro-processing, insurance, education, and industrials.
His most lucrative investment has been in Britam Holdings Plc, a leading insurance group. In 2015, Munga acquired a Sh7.1 billion stake in Britam through a deal with Mauritius investors that sparked controversy over claims of undervaluation. Despite windfalls, including Sh234.5 million in dividends in 2016 alone, his fortunes in recent years have been overshadowed by debt disputes, land evictions, and failed court attempts to shield assets from auction.
The Lawsuit by Rose Njambi Munga
The latest twist came on September 9, 2025, when Rose Njambi Munga sued Peter Munga and ABC Bank in the High Court. At the center is 75 million ordinary shares in Britam Kenya Plc, worth about Sh510 million at current market prices. Rose argues that these shares are matrimonial property under Kenya’s Matrimonial Property Act of 2013 and that Munga unlawfully pledged them as collateral without her knowledge or consent.
Her petition also names ABC Capital and the Central Depository and Settlement Corporation (CDSC) as defendants, seeking to block the lender’s planned auction of the shares.
Loans Behind the Dispute
The dispute traces back to Equatorial Nut Processors Ltd., a macadamia exporter where Munga owns 92%. To finance contracts with government agencies and international organizations, the company took out several facilities from ABC Bank.
The loans, detailed in ABC’s amalgamation and restructuring offer letter, include:
- Term Loan 1: Limit of Sh238 million, outstanding Sh88 million, for general operations.
- Term Loan 2: Limit of Sh112 million, outstanding Sh30 million, to procure raw materials.
- Short-Term Loan Limit 1 (Contract Financing): Sh102 million, outstanding Sh84 million, tied to a Ministry of Education purchase order.
- Short-Term Loan Limit 2 (Contract Financing): Sh100 million, outstanding Sh40.39 million, covering 80% of exports to Guangzhou Macadamia Nuts.
- Revolving Short-Term Loan (Contract Financing): Sh294 million, outstanding Sh119 million, linked to a KEMSA–Global Fund contract.
- Short-Term Loan Facility Limit 3: Sh36 million, financing 80% of a World Food Programme contract for super cereal supply.
As of September 24, 2024, Equatorial’s total outstanding debt stood at Sh433.76 million, around $3.35 million at prevailing exchange rates. When the company defaulted, ABC Bank issued a demand notice to Munga, who had guaranteed the loans and pledged his Britam shares through ABC Capital.
Munga’s Previous Court Fights
This is not the first legal battle over the Britam stake. In October 2024, Peter Munga filed a suit at the Milimani High Court seeking to stop ABC from auctioning the shares. Justice Alfred Mabeya dismissed the application in January 2025, holding that Munga knowingly guaranteed the loans and offered the shares as security.
Undeterred, he moved to the Kiambu High Court in February 2025 and obtained interim orders to block the auction. However, in April 2025, Justice Dorah Chepkwony lifted the orders, faulting him for failing to disclose the earlier Milimani case. She ruled that this amounted to an abuse of process, paving the way for ABC to proceed with the auction.
The loss added to other setbacks, including property auctions and a 2025 eviction order against his Pioneer International School from a disputed 75-acre Del Monte lease.
Rose Njambi’s Case
Rose’s petition adds a new dimension by shifting the dispute into the realm of matrimonial rights. She claims that because the shares were acquired during their marriage, they cannot be pledged without her spousal consent. She seeks:
- A permanent injunction to stop ABC from selling, transferring, or charging the 75 million Britam shares.
- A declaration confirming her proprietary life interest in the shares.
- Cancellation of all guarantees, charges, or liens registered by ABC Bank.
- General damages for breach of her constitutional right to property under Article 40 of the Constitution.
Rose also noted that ABC had already started preparations for the auction. To demonstrate good faith, she offered to deposit Sh100 million in court, possibly to create room for restructuring discussions, but insists her involvement is legally required.
ABC Bank’s Position
ABC Bank has responded vigorously, arguing that the securities were properly executed and enforceable, since the shares were registered in Peter Munga’s name. The bank insists that its enforcement rights are valid under the charge documents, especially after repeated defaults by Equatorial Nut Processors.
The lender also highlights that delays in payments from clients, including KEMSA and the World Food Programme, contributed to Equatorial’s inability to service its loans, but that does not negate its rights as a secured creditor.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.