By PATRICK KIBET

KENYA: The High Court has said it cannot interfere in the looming dispute over a multi-billion shilling deal between Naivas Ltd and a South African firm.

Newton Kagiri Munuhe, who claims he has been sidelined in the family business, wanted the High Court to issue injunction orders stopping the sale of a stake in Naivas to a South African company, pending hearing of the case on November 11.

Justice Anyara Emukule directed full disclosure by Naivas Ltd on any deal and noted the court could not interfere with the sale because it promoted direct foreign investment in the country.

Through lawyer Evans Ondieki, Kagiri argued that Naivas Ltd was a family business and he had been excluded by his siblings from benefiting from the chain of supermarkets.

Ondieki told the court that Kagiri was a shareholder in Naivas and a beneficiary of any impending sale.

Francis Mwangi, representing Naivas Chairman Simon Gashwe, argued that Kagiri was not a shareholder of the chain of supermarkets and was holding everyone at ransom.

Mwangi told the court Kagiri had filed the application after the hearing of the main suit commenced, stalling the case.

According to Gashwe, Kagiri had mismanaged Rongai Self-Service Store in the 90s and squandered an opportunity to own a stake in the leading supermarket.

Gashwe noted the supermarket was a limited liability company and not a family business as alleged by his brother.

Private entity

However, Kagiri said when Naivas Ltd was registered as a private entity he was excluded and only Gashwe and Naivas Finance Manager David Kimani listed as directors.

Kagiri on May 5 last year moved to court over claims that his brother Gashwe wanted to dispose shares in the supermarket.

According to Kagiri, his father had 30 per cent shares in Naivas Ltd and not 20 per cent as indicated by his brother in documents filed in court.

Gashwe owns four per cent like his brother David Kimani, while his two sisters, Grace Wambui and Linet Wairimu, have six per cent each.

Naivas Supermarket, with a Sh6 billion market value, was started in Rongai town in Nakuru County in April 1990 as Rongai Service Stores,   with sustained growth and expansion to Eldoret, Nairobi, Nakuru and Mombasa.