Dec 5, 2022

Mawazo Writing Africa

Writing about the main

Battle royale as Naivas shares lawsuit starts

The Naivas ownership battle will be fought in court today as a bitter family dispute over the multi-billion dollar retailer opens in Nakuru.

Mr. Newton Kagira Mukuha, the eldest son of Naivas founder, Peter Mukuha Kago, has appealed a High Court decision rejecting his bid for a stake in the retail chain.

Mr Kagira has accused his siblings of forcing him out of the business, despite reports according to 20 percent, Cent contributed seed capital during its incorporation in 1990.

He wants the Court of Appeals to determine whether ownership of Naivas should be based on the original financiers during the company’s incorporation or the current owners, who were determined by the Registrar are listed by companies.

Read: In its rapid expansion, Naivas claims to have learned from failed chains

Mr Kagira also accused his brother, Mr David Kimani, who is the current Managing Director, of colluding with his other brother, Mr Simon Gashwe, to delist him as a co-owner, thereby denying him his rightful share in the company. As Mr Gashwe has since passed away, Mr Kagira has listed his son Charles Mukuha, the current representative of his father’s estate, as a defendant.

Mr Kagira moved to the Court of Appeal under a letter of urgency in August 2021, after his previous Application for ownership of company was dismissed by the High Court.

Read: Naivas Dispute: Bid Against Will Fails

Im On November 10, 2021, he secured orders to stop further sales of a stake in the company after it was revealed the supermarket had sold a 30 per cent stake to the International Finance Corporation (IFC, the private lending arm of the World Bank), the Private -Equity firms Amethis and MCB Equity Fund and German sovereign wealth fund DEG for Sh6bn in exchange. Last month it emerged that French sovereign wealth fund Proparco had acquired a US$31.5 million (Shh3.7 billion) stake in Naivas as part of a consortium that will collectively take a 40 percent stake in the retailer.

Read : How Naivas grew from a village shop to a supermarket chain

They take over shares owned by a consortium of investors, which include IFC and MCB Equity Fund, Amethis and DEG. The injunctions requested by Mr Kagira were issued by Court of Appeal Judges Daniel Musinga, Hannah Okwengu and Asike Makhandia. , Ms Linet Wairimu (15 percent), Ms Grace Wambui (15 percent) and Mr Kago (20 percent).

Mr Kagira argues in court that the true ownership structure of Naivas should include its 20 percent, 30 Percent shares owned by her late father, Ms. Wambui (25 percent), Ms. Wairimu (15 percent) and Mr. Kimani (10 percent).