Serious questions are emerging over the management of trust funds held by the Office of the Public Trustee in Kisumu after beneficiaries accused officials of mismanaging and allegedly embezzling an estate meant for orphaned children.
The controversy has renewed public concern about the integrity of trust management in Kenya, with critics saying institutions tasked with protecting vulnerable beneficiaries are instead exposing them to prolonged hardship and possible loss of inheritance.
At the centre of the dispute is the estate of the late Benard Ouma Oduya, whose property was placed under the Public Trustee’s care decades ago to safeguard the future of his children. The estate was formally registered under File No. 242/94.
According to family members, their mother, Josephine Adhiambo, entrusted the Government of Kenya with the responsibility of holding the estate until the children reached adulthood. The expectation was that the properties and income generated would support the children’s education and welfare before being handed over once they turned 18.
However, the beneficiaries now claim that instead of protection, they have faced years of neglect, financial deprivation and lack of transparency.
Mary Juliet Atieno and Rosebella Odundo, daughters of the late Oduya, say they have struggled to access their inheritance despite attaining adulthood several years ago. They allege that remittances from the trust stopped shortly after they completed high school in 2012, leaving them without financial support.
The sisters claim repeated attempts to obtain accounts and documentation from the Public Trustee’s office have yielded little response, forcing them into casual work and in some instances domestic labour to survive.
The case has raised questions about compliance with the Public Trustee Act, which requires that once beneficiaries reach the age of majority, trustees facilitate transfer of assets and provide proper accounting of the estate.
Family members say the beneficiaries have been adults for years, yet the title deeds and control of the estate remain under the Public Trustee.
Part of the contested estate includes rental houses located in Migosi area of Kisumu. The trustees are said to have reported rental income of about KSh10,000 from the properties, a figure the family disputes as far below prevailing market rates for similar houses in the area.
The beneficiaries are now demanding full disclosure of rental collections and expenditure over the years, questioning who has been receiving rent and how it has been utilised.
Further allegations have emerged that a vehicle belonging to the late Oduya has not been disposed of or handed over to the beneficiaries as expected. Instead, the family claims the vehicle has been in personal use by individuals linked to the trust management, raising concerns of possible intermeddling with estate property.
The Public Trustee’s office has also been accused of requesting original documents such as title deeds and logbooks from the beneficiaries, despite records indicating that these documents were deposited with the office when the estate was first placed under state protection.
The request has raised concerns among the family over possible loss or mishandling of critical estate documents.
Beyond the financial questions, the dispute highlights the human cost of prolonged trust disputes. Family members say the beneficiaries have experienced years of instability, including threats of eviction from family property and lack of access to income generated by their father’s estate.
Advocates following the matter are now calling for a comprehensive audit of the estate and operations of the Public Trustee’s office in the case. They are demanding a full statement of accounts covering all income and expenditure related to File No. 242/94 from the time the estate was placed under trust to date.
There are also calls for immediate transfer of the estate assets to the rightful beneficiaries and an independent investigation into the management of the trust fund.
Legal experts note that trustees hold property in a fiduciary capacity and are legally required to act solely in the interest of beneficiaries. Any misuse of trust assets for personal benefit or failure to account for income may constitute a breach of trust and could attract legal consequences.
The unfolding case has once again cast the spotlight on the management of public trusts in Kenya and the need for stronger oversight to protect beneficiaries, especially minors and vulnerable families.
For many observers, the situation underscores a broader crisis of confidence in trust institutions, with calls growing for transparency, accountability and reforms to ensure estates placed under state protection are managed with integrity and in the best interests of those they are meant to serve.
