Naivas following the footsteps of Tuskys?

Naivas Supermakets is locked in a fresh family feud over ownership of the giant retailer and proceeds from the sale of a minority stake to a consortium of investors for Sh6 billion.

Newton Kagiri Mukuha, the eldest of the three brothers who since 2012 have been fighting a bruising battle for control of Naivas Supermarkets, has renewed his fight over the retail chain in a row that has seen the High Court block further stake sales in the firm.

Mr Kagiri sought the ouster of his brother, David Kimani, as CEO of Naivas, a seat on the board of the retailer, a 20 percent stake and additional shares from the 20 percent stake held by his dad, the late Peter Mukuha Kago.
He also petitioned the court to freeze further share sales in Naivas and for deposit of the Sh6 billion, which a consortium of investors paid for a 30 percent stake in the retailer in an interest-earning joint account.

Mr Kagiri reckons that he is entitled to a 20 percent stake worth Sh4 billion from his seed capital that established Naivas and inheritance of his father’s stake.

The businessman is challenging a High Court ruling of 2014 that found he had no stake in the retail chain after the judge said he ran down all the stores he inherited from his father.

The latest family fight comes months after Naivas received Sh6 billion from the International Finance Corporation (IFC), private equity firms Amethis and MCB Equity Fund and German sovereign wealth fund DEG for the minority stake, with the deal set to fuel Naivas’ expansion across the country.

This is sad. Local retailers…Nakumatt, Uchumi, Tuskys…

There is always that one family member who ruins everything they touch

That Newton guy is a crook. In the info below, he says the bros incorp’ed it to a company in 1993 and that he noticed it in 2013…20 yrs later.

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Hata mimi siwezi wacha 6B iende hivo

Naivas valued at 20 billion. Hao investors wanapenda kutupa pesa. For 6 billion wangeanza their own chain with local management to avoid a similar fate to SA retailers.

Kwani biashara ya supermarkets imerogwa jameni? Lakini pesa/mali ya inheritance ni mbaya. Kuisha ni haraka sana

biashara private ya kifamilia huwa inahusu wakenya na nini? its success or failure does not concern us.

Naivas wakitaka fiti wafungue online store…dont remember the last time nilienda super…electronics online food and staffs local outlet…mambo yakuenda super rows after rows unatafuta kitu na labda haiko.

For most PE groups, they are never there for the long run. Their MO is to put their money in a company, brand it more visibly and make it suitable to e.g a big multi wanting a Merger & Acquisition/take-over. Once deal is locked, they flip it and move to another.

If you become successful, your private business becomes public business. That’s how the world works and there is an entire system called the press whose job is to investigate everything you do and they get paid by readers for it. But as a regular Joe, you wouldn’t understand it.

The smart PE groups in Kenya have invested heavily in restaurants like Artcaffe, Java, Big Square etc. Investments in family-owned supermarkets have always had succession/inheritance issues. Hata Quickmart ni bahati tuu.

Quickmart naskia they have a PE fund registered in Mauritius that is fueling their expansion drive. Their secrecy in revealing them makes me think hao ni kina Gatheca/Arror or local guys cleaning money.

Do you know how much work it takes to start a retail store from the ground up? Some ventures are easier to get into with bought deals. Less exposure and you leave the hard work to people who have a track record.

Nothing 6B cant do. In fact, they can start with as little as 1B and inject the remaining 5B in phases.

Supermarket kenya ni za ku clean doo, backthen Nakumat was the deal, after director accounts were frozen a broad, shida ikaanza.

Look at the ripple effect when/if it fails…It affects Kenyans across the board…I don’t expect you to see this though, the UDA wheelbarrow has blinded you.

Can you imagine these are the advisors wa arrorrr, people who can’t see beyond their noses?

Very true…it’s easy to do creative accounting/launder with supermarkets due to their high volumes and turnover. Nakumatt was kina Mwau’s laundromat.

io space haiezi baki empty, kutaingia wengine waendeleze uchumi.