The Court of Appeal has intermitted the sale of any more stakes of Naivas Supermarket.

This comes after a son of Naivas founder moved to court to stop his brother from selling more stakes of their father's company.

The siblings have been feuding over the control of the multi-million company their father had left them.

In 2010, the founder of the chain of supermarkets Peter Mukuha Kago passed away, revealing cracks in the family business that seemed to have been held intact by his life.

Kago’s eldest son, Newton Kagira, moved to the Nakuru Court of Appeal in August to claim ownership of the business after High Court dismissed his prior applications for the same.

Read More

  1. Airtel Money unveils festive lifeline with Paybill 'Rudishiwa Transaction Fee' offer
  2. Court dismisses petition by Woodley residents against Nairobi housing project
  3. Tuju pains as court clears way for auction of Karen property over Sh4.5 billion debt

The Appellate Court through Justices Hanna Okwengu, Daniel Musinga and Asike Handa allowed Kagira's application to stop his family from selling additional shares until after the hearing and determination of his appeal on November 25.

“The status quo in so far as the shares in dispute are concerned be maintained pending hearing and determination of the said appeal,” the court order read.

Kagira accused his family led by his brother the Managing Director of Naivas Supermarket David Kimani of kicking him out of their business and disinheriting him even though in 1990, he contributed 20 per cent of the capital.

Kagira argues in his latest application that his family has locked him out of the family benefits after his siblings allocated themselves all shares and sold part of the business for Sh6 billion.

He also claimed that upon their father’s death, Kimani redistributed part of the deceased's stake to family members but allocated nothing to him.

Kagira wanted the court to restrict the sale of shares or interference with Naivas Limited money assets until the case is determined by the Appellate Court.

"That the applicant is praying that the honourable court be pleased to issue temporary order restraining the respondent and all directors of Naivas Limited from further sale of shares or interfering with money assets held by Naivas Limited pending the hearing and determination of Appeal,’’ read the court documents.

Kagira also challenged the shareholding of Kimani and claims he illegally allocated himself a 20 per cent shareholding in the company.

According to the court documents, Kagira has also been denied company benefits for over 30 years despite being a major contributor to the capital and the third largest contributor as well.

"That the applicant herein has been denied any company benefits from Naivas Limited for a period of more than 30 years despite having been a true contributor of 20 percent, the 3rd largest contributor of the seed capital," the court document read in part.

The wrangles in the family business caused the withdrawal of South African company Massmart from buying majority stakes in Naivas.