Newton Kagira Mukuha, the eldest of three brothers feuding over the ownership of Naivas supermarket, has hired top law firm Ahmednasir Abdullahi Advocates LLP to represent him in a lawsuit in which he is battling for a stake in the giant retail chain.
Lawyers from Ahmednasir Abdullahi Advocates LLP have entered the case with a letter to the Registrar of Companies at Sheria House seeking to know the current shareholding structure of Naivas Limited.
Also sought by the law firm are any changes relating to the business in the wake of a recent share buyout from private equity firms alongside copies of all returns filed since the retailer started its operations.
“We have instructions that our client as a beneficiary of the estate of Peter Mukuha Kagira(deceased) has several suits pending in court wherein the issues in contention touch on the shareholding and/or ownership of Naivas Limited,’’ the February 28 letter seen by Nation reads in part.
“In order to enable us to advance and articulate our client’s interests appropriately, kindly but urgently favour us with copies of the following documents and/or information relating to the company: A current CR12 showing the current shareholding and directorship of Naivas Limited, an indication of all changes effected relating to Naivas Limited from the date of incorporation to date, and copies of all returns filed in relation to Naivas Limited from the date of incorporation to date,’’ the letter further stated.
Mr Kagira has since 2012 been feuding with his younger brothers for control of the multibillion-shilling business. He is seeking the ouster of his brother, Mr David Kimani, as CEO, a seat on the board of the retailer, a 20 per cent stake, and additional shares from the 20 per cent stake held by his late father Peter Mukuha Kago.
Mr Kagira accuses Mr Kimani of colluding with their late brother Simon Gashwe and fraudulently locking him out as one the registered owners of Naivas thus disinheriting him from both his stake and that of his father.
Mr Kagira has now listed his late brother’s son Charles Mukuha Simon Gahwe, who is the current representative of Mr Gashwe’s estate,as the respondent in the case.
Mr Kagira moved to the Court of Appeal in Nakuru in August 2021 under a certificate of urgency after his previous applications to claim ownership of the business were dismissed by the High Court.
In November 2021, he secured orders stopping the sale of a stake in the business after it emerged that Naivas had sold a 30 per cent stake to International Finance Cooperation (a private lending arm of the World Bank), private equity firms Amethis and MCB Equity Fund and German sovereign wealth fund DEG for Sh6 billion in exchange for a minority stake.
The orders were issued by a three-judge bench comprising justices Daniel Musinga, Hannah Okwengu, and Asike Makhandia.
“In the meantime, the status quo in so far as the shares in dispute are concerned to be maintained pending hearing and determination of the said appeal,’’ the ruling read in part.
Naivas supermarket directors are listed as Mr David Kimani who owns a 25 per cent stake, Mr Simon Gashwe (25 per cent), Ms Linet Wairimu (15 per cent), Ms Grace Wambui (15 percent), and Peter Mukuha Kago (20 per cent). Mr Kagira argues in court that the true ownership structure of Naivas supermarket should read 30 per cent shares owned by their late father, his sister Grace Wambui 25 per cent, Newton Kagira 20 per cent, Linnet Wairimu 15 per cent and David Kimani 10 per cent.
The Naivas ownership row comes less than a year after it emerged that French sovereign wealth fund Proparco has acquired a $31.5 million (Sh3.7 billion) stake as part of a consortium that will own a combined 40 per cent ownership in the retailer.
They are taking up stakes owned by a consortium of investors that include the International Finance Corporation, MCB Equity Fund, Amethis, and German sovereign wealth fund DEG, which acquired the shares in the retailed for Sh6 billion in April 2020.
Mr Kago’s family has pocketed an estimated Sh3.8 billion from the sale of an 8.5 per cent stake to the consortium in a transaction that puts its value at Sh45.6 billion, Mauritius-based conglomerate IBL says in its disclosures to its shareholders. BY DAILY NATION