NAIROBI, Kenya, Dec 21 – Dust has settled on the Naivas Supermarket power struggle following the Court of Appeal ruling that found that Newton Kagiri Mukuha has no stake in the retail chain.
Newton, who is the eldest of the three brothers, has been fighting for control of the retailer following the 2020 sale of a minority stake in Naivas worth Sh6 billion to a consortium that includes the International Finance Corporation (IFC), private equity firms Amethis and MCB Equity Fund and German sovereign wealth fund DEG.
A three-judge Appeal Court bench ruled that Newton failed to prove any flaws in a prior High Court ruling which deemed him not entitled to a stake in Naivas. The High Court ruling had also found that he ran down a retail store handed down to him by their father.
Newton sought to have his younger brother David Kimani ousted as Naivas CEO, a seat on the company’s board, a 20 percent stake and an additional 20 percent stake from his late father’s share of the company.
He also wanted the Sh6 billion paid by the consortium of investors deposited in an interest-earning joint account, and for the court to freeze further sales of Naivas shares.
According to the High Court ruling, Naivas ceased to be a family business on October 31, 1999, when the late father shared family assets among his children where his brothers His brothers David Kimani and Simon Gachwe were give two stores in Naivasha and Elburgon of the three retails stores his father had owned. The two brothers teamed up and grew what became Naivas.
“Clearly, the objector (Newton) has no interest, legal or equitable share, in Naivas Limited,” High Court Justice Emukule had ruled.
The Sh6 billion raised by Naivas is meant to fund the company’s expansion. It currently has over 70 branches.
Naivas opened two new branches in November – Oasis Mall in Malindi will be unveiled on Thursday, November 9 and another in Embakasi, Nairobi a day later. The spaces at Oasis Mall and Embakasi were previously occupied by fallen retail giants Nakumatt and Tuskys respectively.
Another outlet at Greenspan Mall in Donholm, Nairobi is to open its doors ahead of Christmas.
