Julius Mwale, a self-proclaimed billionaire, finds himself entangled in another scandal, this time accused of defrauding a 95-year-old blind and partially deaf woman, Fiona Graham, of Ksh 466 million. Mwale allegedly manipulated Graham to trust him under false pretenses, eventually coercing her into remortgaging her properties, leaving her in severe financial distress.
Despite promising to repay her, Mwale instead took advantage of her assets, leaving her financially ruined. Court documents filed by Graham’s attorney, Julian H. Lowenfeld, in the New York Supreme Court on May 24, 2019, reveal that Mwale had signed a promissory note to repay Graham Ksh 466 million (US $3.6 million) by November 24, 2020, with an 8% annual interest starting from the date of the agreement.
“The Defendant has not paid the note and owes $3.6 million on the unpaid principal, plus $1,356,361.64 in accumulated interest as of February 6, 2024. The total amount owed by the Defendant is $4,956,361.64, with daily interest increasing by $789.04,” Graham stated in her affidavit.
The agreement stipulated that if Mwale defaulted on the repayment, Graham could demand the immediate payment of the entire outstanding principal and interest. Furthermore, Mwale would be responsible for all legal costs incurred by Graham in enforcing the note.
Despite these terms, Mwale has reportedly failed to comply, adding to the growing list of allegations against him, including concerns surrounding the legitimacy of his Mwale Medical and Technology City (MMTC) project in Butere, Kakamega County. The project has been called a scam in another lawsuit filed in the US.
Earlier this month, Mwale, long touted as a self-made billionaire, was also sued by an American couple, Mat and Brooke Shaw, who demanded a refund of Ksh 112 million they had invested in his smart cities project. The couple claimed they were lured by Mwale into investing, only to discover during a visit to Kenya that the project was a fraud.
The hospital, purportedly worth over Ksh 200 billion, has come under scrutiny following the Shaws’ shocking revelations. According to their suit, the hospital, once marketed as the world’s largest and most advanced, was in a state of disrepair. They found that only one wing of the facility was operational, housing a run-down clinic treating children for malaria, with no evidence of the promised cancer treatment center.
“The hospital was simply a shell, nothing like what was represented,” the Shaws’ court papers stated.
Mwale, along with his American wife Kalia, owns a lavish estate in San Jose, California, reportedly worth billions. He has previously been recognized by Forbes as “one of Kenya’s top entrepreneurs,” but these recent accusations have cast serious doubts on his business ventures.
