Shoprite fights order halting its exit from Kenya market

South African retail store, Shoprite has asked the High Court to lift an order halting its planned exit from Kenya over a petition filed by a shopper who claims to have been injured in one of its branches.

In reply to a case filed by Patrick Macharia Maina, the retail chain said the continued existence of the order was causing it massive financial losses and likely to expose it to lawsuits.

The supermarket said in the court documents that it was willing to deposit Sh3 million in a joint income earning account, to act as security.

Anton Wagenaar, a director of the supermarket, said the decision to exit Kenya was made in March last year and the supermarket commenced negotiations with various landlords to surrender their leases ahead of time.

He said the retail chain eventually entered into a settlement agreements with all landlords and which have been executed by the time the order was issued by Justice Anthony Mrima.

He said the supermarket can pay Mr Maina in case he is successful in his claim. He further revealed that it had proposed to deposit Sh500,000 in a joint interest earning account but he declined the offer and even an enhanced figure of Sh2 million.

Mr Wagenaar said Mr Maina refused to quantify his “soft tissue injury claim” or present medical report but demanded a settlement of over Sh190 million on alleged loss of earnings.

Mr Maina had sued the supermarket seeking compensation saying that a stack of plastic lids fell on him causing him soft tissue injury while shopping at its Garden City branch.

He said the supermarket had plans of closing down its shops in Kenya later, which would make it difficult for him to get compensation.

In the ruling, Justice Mrima had said that in the event that Shoprite is allowed to leave Kenya as they intend to then it will be hard to enforce any order of the court.

“In order to strike a balance between the rival positions, and prior to determining whether this Court has the jurisdiction to deal with this Petition, it is only fair that an interim relief be granted,” the court ruled.

The father of two who was shopping with his family says he suffered several injuries, swollen lips, lacerations on the lips and bleeding inside the mouth.

In reply, Shoprite says it is an international supermarket chain of global repute, operating over 2,500 stores in 15 countries. The company said its holding company is listed in the Johannesburg stock exchange and its planned closure in Kenya was done in an orderly, professional manner unlike other supermarkets.

Court documents showed that it is worth Sh3 billion and if successful, Mr Maina’s claim is a minute fraction of the massive losses the company, its employees and landlords will suffer because of the existence of the order.

“The order has opened up the respondent to potential lawsuits from the landlords whom it had signed with agreements of surrender of lease and asset transfer as it was exiting its leases before time. Also in jeopardy is the landlord’s agreement with the incoming tenants,” Waganaar said.