Zum Zum ownership feud erupts as state eyes land for squatters

Milimani Law Courts, Nairobi. [File, Standard]

Lawyers representing warring former business partners behind a company which the government intends to compulsorily acquire a multi-billion-shilling property for Mombasa squatters clashed over court orders issued by Milimani Commercial Court Judge Rhoda Rutto.

Senior lawyer Paul Mwangi, who represents Nedim Mohamed Ibrahim in the case, told the Judge that the orders she issued were allegedly to defy Justice Florence Wangari’s orders by the Registrar of Companies, requiring Zum Zum Investments Limited shares held by his client’s former business partner Abdulkarim Saleh Muhsin.

President William Ruto had indicated that the government was already in talks with property owners with an intention to buy them to settle squatters.

Among those he mentioned was Zum Zum.

In court, Mwangi claimed that the registrar of companies was banking on Justice Rutto’s orders on the transfer of shares not to comply with the previous orders, despite warnings that he would be cited for contempt.

“The orders are being misinterpreted by these two gentlemen. The two were notified of contempt for disobeying the court and they quoted you an excuse for not complying. The orders are being used by officials of the Business Registration Bureau and the acting registrar of Companies say they will not follow the orders because you have ordered that they do not follow the orders of Justice Wangari. The position is scandalising this court and judiciary by purporting that you ordered a party not to obey another court,” argued Mwangi.

In response, Saleh’s lawyer Diana Mumo urged the court to dismiss Mwangi’s arguments, saying that her client would respond to the allegations in a further affidavit. She insisted that since Mwangi had stated that there were orders from other courts, he ought to have filed an application to allow the cited parties to respond.

Justice Rutto directed Mwangi and Mumo to discuss and come up with an amicable solution.

However, the issue was a tower of Babel, as they could not agree on the way forward.

Mwangi told the judge that at the heart of the case was an order by another court, while Mumo asserted that the orders by Justice Rutto were binding on all parties.

“We also need to consider the issue of this court being scandalised and being depicted as an impediment to the implementation of orders from another court,” said Mwangi.

Mumo replied: “Where a court has issued orders, they are binding. While counsel says there are orders from other courts, he can move the court or whatever way they deem necessary but cannot do this without casting aspersions on the bar. If there is an issue of jurisdiction, it must be done properly.”

The case was filed by Saleh. He sued Nedim, BRS and the Registrar of Companies. Saleh said he is the chairman and director of Zum Zum and that Nedim had allegedly fraudulently sought the transfer of shares.

He claimed there was no resolution or meeting held authorising the transfer of 100,047 shares in Zum Zum to Nedim.

He sought the suspension of the process, arguing there was an ongoing investigation.

According to Saleh, Zum Zum was incorporated on September 29, 1998, with one Lohari Jethanand Maghani and Saidi Abdalla Khatib as the initial subscribers.

The court heard that he, alongside Nedim, bought the company as joint owners. He, however, alleged that his Nedim is a minority shareholder of Zum Zum.

Saleh claimed that Nedim, on June 30, 2026, lodged a transfer of shares indicating that he had allegedly ceased being the majority shareholder and director. In addition, he alleged that Nedim had also allegedly claimed that he had transferred all his shares to him.

Saleh told the court that there was no meeting by the company directors and shareholders, saying that he lodged a complaint with the Directorate of Criminal Investigations (DCI) on August 18,2026.

In response, Nedim stated that the new case was an alleged plot to evade orders by Justice Wangari requiring the surrender of shares by Saleh to him. He said that Saleh had sought suspension of the orders before Justices Gatembu Kairu, Agnes Murgor, and Pauline Nyamweya, which was denied.

“It is therefore inconceivable that I would have been lying to take the shares of Abdulkarim Sale Muhsin because no such shares exist, the same having been surrendered by the Mediation Agreement, the judgement of 23rd November 2023 and the Deed of Surrender of Shares executed by the Deputy Registrar of the High Court in Mombasa,” replied Nedim.

He insisted that Saleh was not Zum Zum’s chairman.

The company owns properties valued at more than Sh5 billion.

The judge directed that the registrar of companies, Saleh and Nedim file and exchange their respective documents. She will deliver her ruling on November 26, 2026.