Daniel Githua, the CEO of Tuskys was today evicted from the company premises and literally hounded out of the retail chain compound in what is seen as a family feud to control the 26 year old business. Mr. Githua was appointed in May last year in a bid to bring in a professional manager to run the business following years of wrangles between the seven siblings who are directors of the company.
John Kago, the first born in the family, who doubles as Tuskys chairman, in May 2015 unveiled Daniel Githua, the chief executive of Speed Capital, as the new managing director of the retail chain, saying the appointment was made with the agreement of the entire family after earlier meeting where they resolved their differences.
However, Mr. Githua’s appointment was immediately opposed by Yusuf Mugweru Kamau, the fourth born in the family, differed with his siblings over control of the retail chain. Â He denied claims by his elder brother that Tuskys shareholders had met and agreed to leave the business in the hands of a professional manager.
Mr Mugweru further questioned Mr Githua’s suitability to head the retail chain that is Kenya’s second-largest and threatened to file a winding-up petition on the business should his siblings fail to speedily resolve their differences.
Mr Mugweru claimed that his elder brother Stephen Mukuha — who he has accused alongside two brothers of diverting Sh1.6 billion from the company’s accounts — handpicked Mr Githua as the new CEO who has previously worked under him [Mr Mukuha].
The CEO, Mr Mugweru claimed, will be under Mr Mukuha’s control. Mr Mugweru declared the appointment as invalid, having been made at a time when the family is embroiled in wrangles arising from allegations of fraud, mismanagement and assault.
Tuskys, a family business jointly owned by five brothers and two sisters, for the first time appointed a non-family CEO in the retail chain’s 25-year history to inject professionalism in the business as it prepared to go public. These plans are now in serious jeopardy.
Tuskys has been run by seven siblings, including Mr Mukuha, Mr Mugweru, Mr Kago, Mr George Gachwe (who was this week replaced as managing director), Sam Gatei, Mary Njoki and Mary Njeri (deceased).
Apart from Mr Kago, the four brothers own a 17.5 per cent stake each in Orakam, the holding company of Tusker Mattresses Ltd. Mr Kago and his two sisters hold the remaining 30 per cent stake, shared equally among them.
More to follow….
