All You Need to Know About Naivas Supermarket's Sibling Rivalry

The children of the late Naivas supermarket founder Peter Mukuha Kago are embroiled in a protracted court battle over the distribution of the chain's shares.

Kago passed away in 2010.

The conflict has now escalated to the court of appeal with the eldest son Newton Kagira Mukuha obtaining orders restricting the sale of the company's shares until his appeal is heard and determined.

This comes after his case, claiming ownership of the business, was dismissed by the High Court.

In a case at the Nakuru appellate court, Kagira accuses his brother David Kimani, currently serving as the managing director of the retail, of locking him out of the company and disinheriting him his shares.

He argues that his contribution of 20 percent starting capital into the business way back in 1990 has been taken by his siblings who have distributed all shares among themselves and sold part of the business for Ksh6 billion without involving him.

The Ksh6 billion was obtained after the retail sold 30 percent minority shareholding to a group of investors.

According to the current ownership structure, retail directors David Kimani owns a 25 percent stake, their late brother Simon Gashwe who served as the company's chairman owns 25 percent, Linet Wairimu owns 15 percent, Grace Wambui owns 15 percent. Their late father owns 20 percent state.

Kagira is protesting the ownership structure saying their father should have a 30 percent stake, his sister Wambui 25 percent, Wairimu 15 percent, Kimani 10 percent, and him 20 percent shareholding.

He accuses Kimani of redistributing the father's stake without considering him.

"That the applicant is praying that the honourable court be pleased to issue temporary order restraining the respondent and all directors of Naivas Limited from further sale of shares or interfering with money assets held by Naivas Limited pending the hearing and determination of Appeal,’’ reads part of the application that he filed in court.

“That the applicant herein has been denied any company benefits from Naivas Limited for a period of more than 30 years despite having been a true contributor of 20 percent, the 3rd largest contributor of the seed capital,’’ the application reads further.

Kagira, who owns separate retail named Green Mart, is also challenging Kimani's shares claiming he allocated himself an extra 20 percent stake illegally.