The High Court in Nairobi has suspended proceedings in a commercial dispute over the ownership of shares in the Sh60 billion retail chain, Naivas Limited, pending the determination of related appeals concerning the inheritance of the wealth of its founder, Peter Mukuha Kago.
The court halted proceedings in a suit filed by one of Kago’s sons, Newton Kagira Mukuha, stating that the dispute over Naivas shares is directly linked to unresolved succession battles involving the estate of the deceased founder.
The ruling pauses further hearings in the suit, which was initiated in 2013, until the Court of Appeal in Nakuru determines two pending matters filed in 2016 and 2017 by Mr Kagira concerning the distribution of his father’s estate.
The protracted legal battle involves Mr Kagira and his brother, David Kimani, in a tussle over the management and control of Naivas Limited, a family-owned business.
The dispute relates to a succession case in which one heir claimed their father died without a written Will on the distribution of the estate. The High Court dismissed the claim in 2014, finding that a valid Will existed.
“All further proceedings, hearings, or actions in this matter shall remain suspended pending the hearing and determination of the appeals currently before the Court of Appeal,” the court ruled, holding that the case cannot proceed until related appeals on inheritance rights are resolved.
Largest retail chain
The case forms part of a broader dispute among members of the Mukuha family over the management and ownership of Naivas, Kenya’s largest supermarket chain.
The retailer operates more than 100 branches across major towns, including Nairobi, Mombasa, Kisumu, Nakuru, Eldoret and other regional urban centres, giving it the largest physical retail presence in the country.
Naivas reported a net profit of Sh2.45 billion in the financial year ending June 2025, up from Sh1.71 billion the previous year. Revenue rose to Sh114.45 billion from Sh94 billion, while total assets increased to Sh60 billion from Sh51 billion.
Between 2017 and 2020, several major Kenyan retailers, including Nakumatt, Uchumi Supermarkets and Tuskys, collapsed or scaled back operations due to debt and governance issues. Meanwhile, Naivas expanded by taking over many of their former store locations, growing its network by 40 outlets and increasing its workforce to 5,000 employees.
Shares battle
Mr Kagira has been locked in a legal battle with his siblings over his alleged entitlement to shares in the company founded by their late father, Kago, who died in May 2010, leaving behind a vast estate comprising land, cash and 10,000 shares in Naivas.
Evidence adduced in the succession cause indicates that Kago bequeathed the shares to four of his children. A beneficiary, Simon Gashwe Mukuha, testified that he had been given four percent, David Kimani (four percent), Grace Wambui (six percent) and Linet Wairimu (six percent).
In the commercial suit before the High Court, Mr Kagira seeks declarations regarding the ownership of shares in the retail chain.
However, the defendants – Charles Mukuha, sued as administrator of the estate of former Naivas chairman Simon Gashwe Mukuha, and David Kimani – asked the court to dismiss the suit or suspend the proceedings.
They argued that previous court rulings had already determined that Mr Kagira had no legal or equitable interest in Naivas Limited.
The respondents cited earlier High Court decisions from 2014 and 2016 that addressed Mr Kagira’s claims to the company. These rulings are the subject of the twin appeals now before the Court of Appeal.
They asked the commercial court to strike out the case, describing it as statute-barred, legally untenable and an abuse of the court process. In the alternative, they sought a suspension of the proceedings pending the hearing and determination of the appeals.
However, the court declined to dismiss the case entirely but agreed that the commercial proceedings could not proceed until the appellate court determines whether Mr Kagira has any ownership stake in Naivas.
“The plaintiff’s right to advance any claim in respect of Naivas Limited in a commercial proceeding is inextricably tied to his ability to establish a proprietary interest in the company. That issue is squarely before the Court of Appeal,” the court said.
It also noted that Mr Kagira had previously argued that appellate decisions would influence the High Court case, making it inconsistent for him to later claim that the two matters were unrelated.
“Having invoked that position in aid of his case, he cannot now be permitted to turn around and disown it when it no longer serves his purpose,” the court stated.
The court rejected the argument that the issues raised in the suit were purely commercial and wholly independent of the inheritance dispute concerning the estate of the late Kago.
The ruling means the commercial dispute will remain inactive until the Court of Appeal resolves the broader succession battle over Kago’s estate and the ownership of Naivas shares. The case will be mentioned on June 30, 2026.
