Giant retailer Naivas is in a fresh family tussle over the proceeds from the sale of a minority stake to a consortium of investors.
Naivas received Sh6 billion from the International Finance Corporation (IFC), private equity firms Amethis and MCB Equity Fund and German sovereign wealth fund DEG for the minority stake.
Newton Kagiri Mukuha, the eldest of the three siblings, in an application filed in court, wants his brother David Kimani removed as CEO and a seat on the board.
Mr Kagiri also wants a 20 percent stake and shares from the 20 percent stake held by his late father, Peter Mukuha Kago.
Read: Competition Authority Okays Sale Of Naivas 30 percent Stake To Amethis Finance
The petitioner also sought to have the court freeze further share sales in Naivas and for a share of the Sh6 billion.
He told the court that he is entitled to a 20 percent stake worth Sh4 billion from his seed capital that established the retailer.
“Court be pleased to issue order compelling the directors of Naivas to jointly deposit the proceeds of sale of shares to Amethis in a joint interest-earning account pending the hearing and determination of the appeal,” said Mr Kagiri who accused his brothers of subjecting to poverty.
“Issue temporary injunction restraining the respondent herein and all other directors of Naivas from further sale of shares and assets.”
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He also wants his late father’s stake redistributed after his younger brother Simon Gachwe and David Kimani were offered 20 percent stake each while his two sisters; Grace Wambui and Linet Wairimu shared equally amongst themselves the remaining 60 percent.
Appellant judges David Musinga, Hannah Okwengu and Asike Makhanda have since frozen further sale of the Naivas shares.
“In the meantime, the status quo in so far as the shares in dispute are concerned be maintained pending hearing and determination of the appeal,” ordered the three-judge bench.
Naivas has more than 75 stores across Kenya.
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