Naivas: Sibling rivalry intensifies as retailer plans more branches
By George Brian, December 7, 2021DISPUTE: Court has waded in the sibling rivalry pitting Naivas chain of supermarkets shareholders against each other.
The rivalry over the control of the retail chain intensified this week even as the retail chain announced that it will be opening doors to its newest outlets in Malindi and Embakasi on December 9 and 10.
The eldest son of the supermarket’s founding owner obtained a court order barring his brothers from selling more stakes in the company.
Newton Kagira Mukuha moved to the Court of Appeal to block his siblings from selling any more shares until his appeal is determined.
Mukuha will walk away with Sh 4 billion from Naivas should his appeal be successfull. A move that his brothers have objected to, saying he sold his shares and was no longer part of the business.
Late father’s stake
The court heard that Mukuha wants his late father’s stake redistributed after his brothers and sisters shared it among themselves.
Documents at the registrar Naivas Supermarket identify directors as David Kimani who owns 25 per cent stake, Simon Gashwe (deceased) who served as the company chairman owns 25 per cent stake, Linet Wairimu with15 per cent, Grace Wambui 15 per cent and their late father Peter Mukuha Kago who owned 20 per cent.
South Africa’s Massmart
The feuds for control of Naivas started in 2012 when the shareholders wanted the sale of the supermarket to South Africa’s Massmart, a that deal collapsed.
The firm has been in an agressive expansion strategy targeting to hit 80 stores by the end of the current financial year.
The retailer has maintained that the expansion will not hamper plans to open three stores in the next three weeks.
“Naivas plans to open an outlet at Greenspan Mall in Donholm, Nairobi before the year ends” a statement from the retail chain said yesterday– Jacktone Lawi