NAIROBI: When Peter Mukuha Kago passed away in 2010, he left his three sons in two factions over Naivas Supermarket.
His eldest son Newton Kagira was pitted against his two brothers, Naivas Chairman Simon Gashwe and Director David Kimani. Now there are three cases involving Naivas Supermarket. The first is about succession of the patriarch and the second is about a loan for goods supplied to the eldest brother by his siblings.
The third rocky matter is about alleged forgery of signatures by Mr Gashwe and Mr Kimani. In this case, Mr Kagira accused his two brothers of defrauding other family members, claims they have denied.
Mr Kago died on May 6, 2010, and was buried two days later.
In the succession case filed immediately after Kago's death, Kagira told a court that his late father convened a family meeting in 1989, with a proposal that his seven children should contribute to start a family business.
Their father gave Sh30,000 for a 30 per cent stake and he Sh20,000 for a 20 per cent share. His sister, Wambui gave Sh25,000 for a 25 per cent stake and Wairimu and Kimani gave Sh15,000 and Sh10,000 for 15 and 10 per cent share respectively.
"From the foregoing, David Kimani and Simon Gachwe, who were absent, did not contribute," he claimed.
He held that the family business started with Rongai Self-Service Stores in 1990 and grew into Naivas Ltd. Kagira referred the court to the Naivas website which states that it is a family business. But his brothers, Naivas Chairman Gashwe and Kimani told the court that Naivas was bought from their uncle Joram Kamau Kago. Joram is the founder of Tuskys Supermaket.
According to their testimonies before Judge Anyara Emukule, the two said they bought Magic Super Stores in Rongai and Getaway General Stores at Sh1,000,000. They were senior managers at the two stores. The court heard that Rongai Self Service Ltd was incorporated in 1993 and it spread its wings to Elburgon, then Naivasha and later to Nairobi.
Gashwe and Kimani, according to their testimonies, shared the stake 50-50 (25,000 shares each) but on November 11, 2007, shared their shares with their father and two sisters. Kago got 10,000 whereas the girls got 7,500 shares each. They contended that there was no family meeting in 1989 and that Naivas was never a family business and that their eldest brother was not a party of Naivas Ltd.
In the second case Naivas, under Gashwe and Kimani, took Greenmart to court for allegedly defaulting to pay Sh12 million for goods it bought.