Family Business: Naivas On The Verge Of Collapse, Brothers Fighting Over Billions

Family Business: Naivas On The Verge Of Collapse, Brothers Fighting Over Billions

Family business is a commercial organization in which many generations of a family influence decision-making.

Blood, marriage, or adoption links them, and have the potential to influence the business’s vision.

The ties also can influence the willingness to use this ability to achieve separate goals.

Family wrangles, however, threaten to destroy the business empires across the world that have existed over generations.

A good example of a family business here in Kenya that went down is Tuskys.

The supermarket went down because of the family wrangles fighting to control the billions in the company.

It seems like Naivas is following suit after brothers are court tussling over who controls the over 6 billions shillings worth of shares.

Naivas, a giant retailer with 75 locations in Kenya, is in a new family feud over the earnings from the sale of a minority stake to a consortium of investors.

For the minority interest, Naivas received Sh6 billion from the International Finance Corporation (IFC).

A private equity firm, Amethis and MCB Equity Fund, and German sovereign wealth fund DEG.

Newton Kagiri Mukuha, the eldest of the three siblings, has filed a court suit seeking the removal of his brother.

He doesn’t want his brother David Kimani as CEO and a seat on the board.

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Mr Kagiri also wants a 20% ownership and shares from his late father, Peter Mukuha Kago’s, 20% shareholding.

The petitioner also asked the court to halt further share sales in Naivas and to divide the Sh6 billion.

He told the court that it entitled him to a 20% ownership in the company worth Sh4 billion because of his seed capital.

He also wants his late father’s interest redistributed after his younger brothers, Simon Gachwe and David Kimani, were each granted a 20% stake while his two sisters;

The remaining 60% was split equally between Grace Wambui and Linet Wairimu.

Appellant judges David Musinga, Hannah Okwengu, and Asike Makhanda halted further sales.

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