Rédaction Africa Links 24 with Daily Nation
Published on 2024-02-04 13:11:53
The famiy of Peter Mukuha Kago, the founder of Naivas, Kenya’s leading supermarket chain, is currently embroiled in a dispute over control and ownership of the family business and their father’s empire. This conflict stems from an application filed by three of the late Kago’s children who have sought to replace their deceased brother as administrator of their father’s estate. The late Simon Gashwe, who was the former chairman of Naivas Supermarkets, died in August 2019, leading to the current struggle for control of the family’s multi-billion-shilling estate.
Newton Kagira Mukuha, Grace Wambui, and David Kimani Mukuha have separately filed applications in the Nakuru High Court seeking to be appointed administrators of the estate, replacing their late brother Simon Gashwe. Gashwe, who owned 25% of Naivas shares, had been appointed as the sole administrator of their father’s estate on May 6, 2010. However, his sudden death in 2019 has led his siblings to contest the distribution of the estate, claiming that it had not been finalized and that some assets had not been distributed.
Mr. Kagira expressed concerns about the estate being looted by strangers due to the lack of proper representation following Gashwe’s death. Additionally, Mr. Kimani opposed Mr. Kagira’s application, citing conflicts of interest and claiming that the estate had been distributed to all beneficiaries prior to Gashwe’s passing. Ms. Wambui, on the other hand, argued that Gashwe’s death halted the completion of the estate’s administration and brought about disputes regarding the distribution of their father’s property.
Amidst this legal battle for control of the family estate, Newton Kagira Mukuha, the eldest brother, renewed his fight for the retail chain’s control, seeking to claim 20% ownership of Naivas limited. He has been locked in a legal battle with his siblings since 2013, accusing them of fraudulently excluding him as a registered owner of Naivas, and thereby disinheriting him from both his and his father’s shares.
Naivas Limited, however, has defended itself against Kagira’s claims, stating that he is a stranger to the company and has no legal claim to it. The supermarket chain maintains that there is no substantive reason for Kagira to prevent the company from selling its shares or assets. Additionally, they argue that the High Court had previously dismissed Kagira’s case in 2016, and his appeal was still pending at the Court of Appeal.
In light of the ongoing legal disputes, the ownership structure of Naivas Limited has also come into question. The company’s directors, as listed, include David Kimani, the late Simon Gashwe, Linet Wairimu, Grace Wambui, and Peter Mukuha Kago, with varying percentages of ownership. Naivas Limited has also recently been subject to acquisition of shares by private equity firms.
The conflict over the distribution of the family estate and the control of Naivas Limited has brought to light significant challenges and tensions within the Mukuha family. The legal battles and disputes highlight the complexities of managing a family-owned business, especially one with significant financial assets and share holdings as in the case of Naivas Limited. As the legal proceedings continue, it remains to be seen how the disputes will be resolved and what implications they may have for the future of the retail giant and the Mukuha family.
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