Drama at Tuskys as directors’ kids kick chief executive out of office

Chairman Tuskys supermarket John Kago kamau during the launch of Tuskys Wareng cross country race 2015 at Hotel Olesereni on Friday night, Oct 30, 2015. PHOTO: JONAH ONYANGO/STANDARD.

Tuskys Chief Executive Daniel Githua was yesterday humiliated in a forced eviction by the grandchildren of the founder.

It was an acrimonious exit for the boss who was recruited in May last year as the first non-family member to head the multi-billion-shilling business. Tuskys is Kenya's second-largest retail chain by branch network and revenues.

A graphic video that captured the confrontation shows about 15 young men and women, identified as sons and daughters of two directors, shoving the manager out of the firm's head office along Mombasa Road in Nairobi.

In the well-executed ouster, they are seen shouting at the manager in a boardroom before ordering him to leave, forever. "Just get out," the five ladies and 10 gentlemen shouted, all thought to be in their 20s, as Mr Githua was led out of the boardroom.

At this point, he was visibly humiliated. Pleas from an older man captured in the video and later identified as Board Chairman John Kago were ignored.

Mr Kago was forced to shield the disgraced chief executive from his own daughter as he made his way out to the parking lot, got into his SUV car and left, with the rowdy youngsters in hot pursuit.

Insiders later confirmed that three of the youthful cousins actually worked at the head office, holding prime positions but answered to Githua – a possible reason they were chosen to embarrass him.

Githua's removal was not exactly unanticipated considering the widening rift among the family members who are pulling apart on suspicion of mismanagement.

Insiders divulged that the manager had been summoned by some members of the board, perhaps to ease the growing tension and redeem the retailer's battered image.

"We would like to state that the children acted on their own volition and not on behalf of the Board of Tuskys," the statement signed by company chairman John Kago read. He added that an investigation into the ugly incident had been started, promising to issue more details on the attack later.

It was not possible to determine which members of the board had attended the meeting that drafted Mr Kago's statement, which also denied that the top manager had been sacked.

Soon after the video leaked and went viral, Kenyans on social media expressed their disgust at how such a senior employee could be humiliated by family members of the directors.

A letter purporting to terminate Githua's employment emerged late last month and was signed by Hannah Wamaitha Kamau – the wife of Tusky's founder Joram Kamau and mother to directors Yusuf Mugweru Kamau, Mary Njoki Kamau and Kenneth Gachuru Mwangi.

The letter was copied to John Kago Kamau, Sammy Gatei Kamau, George Gachwe Kamau and Stephen Mukuha Kamau – who has previously served as the retailer's managing director.

Excluding their mother's vote, Githua's sacking was approved by a minority of the board that has always been opposed to the elder siblings in the running of the business.

Kago is the first-born son of Ms Kamau, and acts as the chairman of the board since she co-founded the business with her late husband.

The mother, however, does not own any stake in the business, as the five brothers jointly own 70 per cent in equal stakes while the two sisters (one is deceased) control the rest.

Yesterday's drama was only a culmination of years of discord among the heirs of the giant business that was started in 1980s. Trouble began soon after the demise of their father Joram Kamau, in 2002. The younger family members demanded that their aging mother rose to chair the board of directors.

Yusuf Mugweru fired the first shots claiming his elder brother Mukuha had diverted about Sh1.6 billion from the business, setting the stage for a series of court cases and fist fights. It was hoped that the recruitment of a professional manager, Githua, would ease the simmering tension while excluding Mukuha from day-to-day running of the business.

But Mugweru was the first to object the entry of the new chief executive, questioning his suitability and capacity to oversee the operations.

By David Njaaga 59 mins ago
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