Naivas bosses told to settle shares row
What you need to know:
- Justice Emukule criticised the feuding family members, saying the dispute had made a South African investor, MassMart, pull out thereby denying thousands of Kenyans jobs
- He said ownership of Naivas shares must first be dealt with as it raises complex matters regarding the estate of its founder chairman Peter Mukuha Kago
A dispute over the ownership of Sh7 billion Naivas Supermarket will first be settled before the founder’s estate is distributed.
Judge Anyara Emukule gave the directive after Mr Newton Kagiri accused his younger siblings, among them Naivas chairman Simon Gachwe, of planning to disinherit him.
He claims his siblings have excluded him from discussions on the planned sale of the firm.
Mr Kagiri, who is representing himself, said Naivas shares were part of his father’s estate despite claims by Mr Gachwe that it is a private company owned by family members and did not include him (Kagiri).
On Thursday, Justice Emukule criticised the feuding family members, saying the dispute had made a South African investor, MassMart, pull out thereby denying thousands of Kenyans jobs as the planned expansion drive was shelved.
He said ownership of Naivas shares must first be dealt with as it raises complex matters regarding the estate of its founder chairman Peter Mukuha Kago who died at his Naivasha home on May 6, 2010 aged 93 years.
On Thursday, Mr Gachwe maintained that Naivas was not a family business as claimed by the objector but a limited liability company with shareholders who make decisions on its behalf.
Papers filed show that Mr Gachwe owns 12,500 shares amounting to a 25 per cent stake, his brother David Kimani (25 per cent), their late father (20 per cent), Grace Wambui (15 per cent) and Linet Wairimu (15 per cent).
It is this part of the will that Mr Kagiri disagrees with, saying his brother illegally registered a new company and listed new directors.
He told the judge that the supermarket was part and parcel of his father’s estate and that he ought to have a share of it as he had contributed generously when it was formed on December 25, 1989, during a family meeting.
Justice Emukule said Mr Gachwe would be the first to take the witness stand and also ordered the Registrar of Companies to attend court and produce original documents on the ownership of the multi-billion company.
