By Prudence Minayo
Wilfred Murungi was a veteran entrepreneur who founded Mastermind Tobacco Kenya (MTK) at a time when British American Tobacco (BAT) dominated the industry. Known for being a recluse, the late billionaire had a long standing tussle with Kenya Revenue Authority (KRA) which played out even in Parliament. Mr. Murungi would maintain his elusiveness even in death where only a handful of people were allowed to attend his burial.
Here is Wilfred Murungi story as told by WoK.
Career
The electrical engineer by profession worked for Kenya Power and Lighting Company (KPLC) before joining BAT. At BAT, he worked as a technical director and managed to amass enough knowledge about Tobacco manufacturing to venture out on his own.
Formation of MTK
The first two years after leaving BAT in 1985, were spent contracting farmers and establishing a leaf processing plant and cigarette manufacturing plant.
In 1989, he launched his first product named Supermatch, which became one of Kenya’s most available and cheapest cigarette brand. This was followed by the launch of Rocket targeting low income earners and rural dwellers.
By 2002, Mastermind controlled about 22% of the cigarette market in Kenya, making it the second largest tobacco manufacturer after BAT. The two had stiff competition with BAT being accused of corporate espionage targeting MTK. MTK, on the other hand, grew to export their products to different African countries including Uganda, Democratic Republic of Congo and South Africa.
In 2019, Business Daily reported that there were talks of a possible sale of Mastermind’s majority stake to Philip Morris International Inc. In terms of sales, Philip Morris is regarded the largest tobacco manufacturer in the world. Apart from this, there have been no reports confirming whether there was a sale or if the negotiations ever happened.
Apart from being MTK chairman, Wilfred Murungi also served in various boards in the country including ARM Cement, Kenya Association of Manufacturers and Kenya Bureau of Standards.
Controversy
The company was in the past accused of taking advantage of farmers.
In 2014, the company was barred from purchasing Tobacco from Migori farmers. The same year media reports stated the cigarette manufacturer had failed to pay farmers months worth of fees amounting to Sh100 million.
In 2016, Nation ran a story where MTK was being accused of owing farmers about Sh50 million. An MTK employee confirmed that the company indeed owed the farmers money and urged them to remain calm as they would be paid.
In 2018, it was reported the company owed farmers Sh100 million. Farmers were advised against selling to MTK.
Apart from farmers’ debts, MTK was on a number of occasions accused of influencing tobacco laws in his favor. The company was accused of using manipulation tactics and in 2007, it was reported to have financed about 40 MPs to a coastal retreat. At the retreat, legislation involving tobacco was discussed in detail.
They was also a disputes with KRA over tax evasion allegations. Business Daily reported KRA were working on recovering Sh1.67 billion in excuse duty and Value Added Tax, and Sh399.98 million of unpaid duty. All in all, KRA aimed to recoup Sh2.93 billion from MTK.
In 2019, they reached an agreement with KRA which put a property owned by the tobacco giant on forced sale.
Death
The Tobacco mogul passed away on Thursday morning 6th June 2019.
Unlike other billionaires who have thousands of mourners turn up for their funeral, Mr. Murungi’s only wanted those very close to him to be present during his burial. He rarely interacted with people from his Magutuni village and preferred to keep it that way in death. His body was ferried in a chopper and then in a Mercedes Benz afterwards. Only eight family members were allowed to witness his burial which took place within an hour. The burial site was heavily armed with police officers whose duty was to prevent the villagers from getting a sneak peak of the burial proceedings.
Those digging the grave were not allowed to witness the burial. They were asked to wait outside the compound until it was time to fill the grave. No pictures were taken of the burial and journalists were also not allowed access.
The public was allowed to attend a requiem mass at All Saints Cathedral two days after the private burial. At the altar, stood a portrait of Mr. Murungi on a table where the casket would ordinarily be. The occasion was graced by a number of influential politician and businessmen.
Wife
It is also said that his wife’s funeral happened in the same way. Joyce Ithiru Murungi’s burial was reportedly attended by 40 people. The villagers were also not allowed to attend the burial. Other reports claim he didn’t attend his wife’s burial but escorted the body from Nairobi to Magutuni.
Very few villagers ever saw the tycoon or his four children: Audrey Wanja, Angela Muthoni, Erick Mugambi and Allan Murungi.
Charity
Despite avoiding the public, Mr. Wilfred Murungi was a seasoned philanthropist. He helped a number of bright kids from the village gain access to education. He also sat on school boards and is said to have contributed in infrastructure including purchase of a school bus. He was among the people who laid the foundation for Chuka University.
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