Kibaki, five others lose bid to retain firm
What you need to know:
- The case on the determination of the ownership of Mathingira Wholesalers Limited has been pending in court since 2008 when the newly incorporated directors moved to court and sued the Kibaki group.
- They listed the former directors, Mr Kibaki, Mr Kimwatu Kanyungu, Mr Kiiru Gachuiga, Mr Gadson Gitonga, Mr Kibera Gatu and the former president’s brother Mr Samwel Githinji Kibaki as respondents.
Former President Mwai Kibaki and five others have lost a bid to retain control of a firm they claim to have owned since the 1970s.
Mr Kibaki’s group wanted a new set of directors who had taken over the firm thrown out and the land buying company to revert to them.
But High court Judge Lucy Waithaka in her judgment on Tuesday ordered the two sets of directors to continue managing the company jointly.
The case on the determination of the ownership of Mathingira Wholesalers Limited has been pending in court since 2008 when the newly incorporated directors moved to court and sued the Kibaki group.
They listed the former directors, Mr Kibaki, Mr Kimwatu Kanyungu, Mr Kiiru Gachuiga, Mr Gadson Gitonga, Mr Kibera Gatu and the former president’s brother Mr Samwel Githinji Kibaki as respondents.
They claimed that they were being denied the right to be directors in the company after some of the former directors willingly sold off their company shares.
Through lawyer Lucy Mwai, they said the dispute arose after the company’s directors disagreed on its management after a new chairman was elected into office in October 2007 replacing Mr Kanyungu.
The new directors selected to manage the company in 2007 were Mr Peter Nderitu, Paul Wamahiu, Sammy Maina and Mr James Kanyi as the new chairman.
The disputed land was bought by nine members including Former president Mr Kibaki in the 1970’s who later on in-cooperated it as Mathingira Wholesalers Limited in 1983. The initial owners of the land also became the directors of the company.
The six former directors through lawyer Kamau Kuria argued that they owned the 0.0697 hectares where the company’s building stands and that the new members were illegally managing the company.
Mr Kibaki who appeared in court earlier told the court that he was not aware that some of the original members of Mathingira Wholesalers had sold their shares.
He had asked the court to allow the parties to solve the case out of court.
However afterwards the parties went back to court and expressed their desire to have the case continue to hearing for the court to give its verdict.
The High Court consequently appointed four directors, a combination from both the new and the initial directors to manage the company pending determination.
Justice Waithaka said the appointed directors should continue managing the company. She also said members can elect new directors during their next elections.
