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Citizen Weekly

Sunday, 14 December 2014

NAIVAS BROTHER TO PAY FINE OR FACE AUCTION

The Naivas Supermarket siblings tussle over the ownership of Naivas chain of supermarkets has taken yet another drastic turn as the elder brother has been ordered to deposit Sh8.1 million in an interest earning account as a pre-condition for being allowed to appeal against the imminent auction of his business.
According to family sources, Newton Nyoro Mukuha’ Greenmart Stores could be auctioned after he lost a court battle with his siblings who are seeking to recover a loan which he has defaulted on.
However, Justice Fred Ochieng stopped the Naivas siblings from proceeding with the auction of their elder brother’s business to enable the hearing of his application to move to the Court of Appeal.
The judge had in a ruling delivered on November 17 allowed Naivas to auction goods owned by Greenmart at Kayole Estate in Nairobi to recover the Sh8 million debt which Mukuha had admitted to owing his brothers.
In the dispute, Naivas general manager Francis Maswili had told the court that on various dates between December 2008 and December 15 2009, Naivas supplied Mukuha Trading as Greenmart Stores, goods for sale at his supermarket worth Sh46,361,264.
“Nyoro, however, paid only Sh34,258,346 for the goods supplied and left a balance of Sh12,102,918 which he has refused to pay despite various requests from Naivas,” he explained.
The siblings have also been locked in yet another dispute over the planned sale of majority shares in Naivas Supermarket to South African retail giant MassMart.
Peter Mukuha Kago, the family’s patriarch died on May 6 2010 due to diabetes related ailments at the age of 93. He is succeeded by his wife and nine children, amongst them six daughters and three sons.
In the suit before the high court, Kagiha has accused his younger brother Gashwe of obtaining a letter of administration by fraudulently by forging his signature and that of his two sisters.
Kagiha accuses Gashwe and his other brother David Mukuha of fraudulently incorporating Rongai Services Store, Naivas’ predecessor company in 1993 at the Registrar of Companies in 1993 on a 50-50 basis.