Karume who was an active figure in the GEMA association had been battling prostate cancer.
Karume died at the age of 83.
His death comes barely four days after the demise of another cabinet minister John Michuki who died on Tuesday and is expected to be buried next week.
President Mwai Kibaki has in the meantime sent a message of condolence to the family and friends of Njenga Karume following his death.
Kibaki said despite his failing health, Karume exhibited great courage and passion for what he believed in.
He stated that he shared great moments with him as a political ally and that he will be missed dearly.
The Head of State further described him as an astute businessman and a quintessential Kenyan who rose from humble beginnings to build a business and political empire through sheer hard work and determination.