Naivas dispute: Bid to oppose Will flops

Naivas Supermarket branch at Nyali in Mombasa on May 27, 2015. Children of the founder of the supermarket are fighting over control of the business. PHOTO | WACHIRA MWANGI | NATION MEDIA GROUP

What you need to know:

  • Mr Kagira claimed that his exclusion, being the eldest son, was against Kikuyu culture as he was the custodian.
  • He had earlier told the court that his brothers were absent from a family meeting that led to establishment of Naivas and that they did not contribute towards its setting up.

The eldest sibling of the family that owns retain outlet Naivas has lost his second bid to claim a share of the multi-billion shilling business.

This is after the High Court sitting in Nakuru on Friday dismissed Mr Newton Kagira Mukuha's objection to a Will written by his late father, Naivas founder, Mr Peter Mukuha Kago.

Judge Anthony Ndung’u found that Mr Kagira’s opposition to the Will had no grounds and directed that the assets of Mr Kago be distributed according to his Will written on March 20, 2010.

Mr Kagira has been embroiled in a court battle with his younger brothers, Mr Simon Gachwe Mukuha (Naivas, Chairman) and Mr David Kimani Mukuha (Director, Naivas), over the control of the Naivas supermarkets.

Mr Kagira filed the case in 2013 claiming that his brothers hijacked the family business and excluded him from the list of shareholders despite contributing to the seed capital to set up the retail chain.

He claimed that his siblings were out to disinherit him and opposed the Will.

Mr Kagira claimed that his exclusion, being the eldest son, was against Kikuyu culture as he was the custodian.

He instead produced a parallel Will in court claiming that of his siblings was not a genuine one.

“The allegations that the other siblings intend to disinherit Mr Kagira cannot stand as the executor shall be bound by the Will,” said Justice Ndung’u.

He also opposed a move by his younger brother Mr Gashwe to be the administrator of the state.

Mr Kagira had asked the court to determine who should be the executor of the late Mr Kago’s will in distribution of his property.

However, the brothers - through their lawyer Frank Mwangi - downplayed claims by the eldest son that his siblings intended to disinherit him telling the court that it was only Mr Kagira who was contesting the late Mr Kago’s Will in the entire family.

MISMANAGEMENT

According to Mr Mwangi, the late Mr Kago had 10,000 ordinary shares (20 per cent) of Naivas which were to be shared out between Mr Gashwe and his three other siblings, excluding Mr Kagira as per his late father’s Will.

In the Will, Mr Gashwe and Mr Kimani were each allocated 4 per cent of the shares whereas two of his sisters, Ms Grace Wambui Mukuha and Ms Linet Wairimu, were given 6 per cent each.

Lawyer Mwangi told the court that Mr Kagira, who has been claiming a 20 per cent stake in the business, had “squandered multiple opportunities” to own shares in the business when he mismanaged Rongai Self Service Store, which had been placed under him by his late father.

He said the alleged mismanagement and embezzlement of Sh230, 000 led to Mr Kagira’s arrest in the early 90s before he was released after his family forgave him.

In his judgement, Justice Ndung’u noted that from the history of the family, Mr Kagira was known to be a lone ranger and not co-operating with others and therefore was not suitable to execute the Will.

On October 31, 2014, a Nakuru High Court found that Mr Kagira had no stake in the retail chain having run down all the stores he inherited from his father.

The court made the decision in a case in which Mr Kagira had objected to the sale of a 50 per cent stake in Naivas to a South African retail chain, Massmart, claiming that he was entitled to 20 per cent of the sales proceeds as part of his inheritance.

He had earlier told the court that his brothers were absent from a family meeting that led to establishment of Naivas and that they did not contribute towards its setting up.