Shoprite contests order halting its exit from Kenya market

Google+ Pinterest LinkedIn Tumblr +

South African retail store Shoprite has requested the High Court to lift an order stopping its planned exit from Kenya over a petition filed by a shopper injured in one of its branches.

In reply to a case filed by Patrick Macharia Maina, the retail chain pronounced the order’s continued existence was producing massive financial losses and likely to expose it to lawsuits.

The supermarket said o prepared it to deposit Sh3 million in a joint income-earning account to act as security in the court documents.

According to Anton Wagenaar, a supermarket director, o decided to exit Kenya in March last year. The supermarket began negotiations with various landlords to relinquish their leases ahead of time.

He announced that the retail chain entered into settlement agreements with all landlords in due course and, implemented by Justice Anthony, Mrima

issued the order.

If Mr. Maina is successful in his claim, the supermarket is willing to pay him. Anton Wagenaar further revealed that it had presented a proposition of depositing Sh500,000 in a joint interest-earning account, which was declined and also an amplified figure of sh2 million.

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

Since the supermarket had plans of closing down its shops in Kenya later, Mr. Maina said that the exit would make it difficult for him to receive compensation.

“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.


About Author

Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: Contact: +254 780216631

Leave A Reply