Mūrūngarū was embroiled in a conflict with the British Government following cancellation of his visa to enter the
United Kingdom due to his involvement in the
Anglo-Leasing scandal. He took the
British Government to court challenging the cancellation of his visa after hiring Kenyan lawyer
Paul Muite and a group of British lawyers, Mr. Rabinder Singh, a
Queen's Counsel of Matrix Chambers, London, Mr. Richard Stein, a senior partner in Leigh, Day and Company and Ms. Tessa Hetherington, a junior counsel of Matrix, to represent him. Murungaru accused the then former British High Commissioner to Kenya,
Edward Clay, of fostering his ban from the UK. On November 23, 2005, President Mwai Kibaki of Kenya dissolved his cabinet following a humiliating defeat on a
referendum on the proposed constitution of Kenya. The President and his key allies, including Mūrūngarū were campaigning for a 'Yes' vote on the constitution, which they lost, forcing the president to reconstitute his cabinet.
Fallout On January 22, 2006,
John Githongo named Mūrūngarū as one of three top politicians (along with
Kiraitu Murungi, former Justice Minister and present Energy Minister, and Finance Minister
David Mwiraria) as being involved in a financial scam involving up to US$600 million. On February 1, 2006, Finance Minister
David Mwiraria announced that he was stepping down as a minister and a member of cabinet to pave way for investigation. The news was received with joy by many Kenyans, though some saw him as a scapegoat who had been sacrificed to protect a president whose support had been waning. On January 16, 2006, President Kibaki allowed anti-corruption chief
Aaron Ringera to request Mūrūngarū to declare and account for his wealth. Mūrūngarū moved to court to prevent the
Kenya Anti-Corruption Commission from investigating, saying fulfilling the commission's request would amount to self-incrimination. Vice President
Moody Awori announced on February 2, 2006 that he would not step down despite being adversely mentioned in the
Anglo-Leasing scandal. He insisted that he was innocent, and that nothing short of due process will make him resign his post. He has criticized by many for defending those involved in the scandal before Parliament. ==Legal battles==