The Sagret Hotel and Gretsa University empire was founded by Kenyan businessman Samuel Kibathi Mbugua and his wife, Dr. Margaret Kibathi Mbugua, who built one of the country’s notable family-owned ventures in hospitality and education.
Before venturing into hotels and higher education, Samuel Kibathi Mbugua built his wealth through coffee farming and later diversified into zipper manufacturing.
The manufacturing business reportedly gave him the financial foundation to expand into other sectors.
The name “Sagret” is understood to have been formed by combining parts of Samuel and Margaret’s names, showing the couple’s partnership in business development.
Rise of the Kibathi Mbugua’s Sagret Hotel Brand
In 1981, Samuel Kibathi Mbugua established the first Sagret Hotel on River Road in Nairobi, marking the family’s entry into the hospitality industry.
The business later expanded with the opening of Sagret Hotel Equatorial on Milimani Road in Nairobi.
This established hotel offered accommodation, conference facilities, food services, and catering, becoming a recognizable brand for affordable hospitality services in the city.
The Sagret hotels in River Road and Milimani helped establish the family’s presence in the hospitality sector for several decades.
Before Samuel Kibathi Mbugua passed away in 2011, the family had already expanded into the education sector through the establishment of Gretsa University.
Birth and Growth of Gretsa University
Gretsa University was established in 2006 in Thika, following receipt of a Letter of Interim Authority from the Commission for Higher Education.
The institution initially operated from the Sagret Hotel in Thika before relocating to its current campus along Garissa Road.
Following the relocation, the former hotel premises were repurposed into student hostels.
At its launch, the university offered degree programs in Business, Computer Science, and Hospitality Management.
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The first students were admitted in 2006, while the institution graduated its third cohort in 2012.
Dr. Margaret Kibathi Mbugua continued to serve as Chairperson of the Board of Trustees at the institution after the death of her husband.
The university’s leadership also includes the family’s son, Kibathi Mbugua, who serves as Chancellor, and Dr. Peter Ndichu Karanja, who has led the institution as Vice-Chancellor.
Charter Recognition and Expansion
Over the years, Gretsa University expanded its academic programs and student population while increasing its role within Kenya’s private university sector.
In 2025, the university received an official charter from the Kenyan government, formally recognizing it as a fully chartered university.
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The charter award marked a major milestone for the institution nearly two decades after its establishment.
Expansion Into Real Estate
In recent years, the Kibathi Mbugua family diversified further into real estate development.
The family partnered in the development of Kahawa Downs, a housing project planned on a 5.2-acre parcel of land opposite Kahawa Barracks.
The project includes more than 200 housing units and is being developed through Housing Finance and Kenya Building Society.
Key family members involved in the project include Kibathi Mbugua, Margaret Mbugua, and George Kamau, one of Samuel Kibathi Mbugua’s sons.
From coffee farming and manufacturing to hotels, education, and real estate, the family has built a multi-sector business empire that continues to operate years after the death of its founder.
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