Tuskys board denounces CEO eviction
The board of Tuskys supermarkets has distanced itself from the eviction of Chief Executive Officer Dan Githua from office on Thursday.
In a statement, Board Chairman John Kago said the board condemned the actions of a group calling itself Tuskys 3rd generation, adding that they acted on their own volition.
“We are currently investigating the matter and will issue full details in due course,” Kago said.
It was high drama at the Tuskys head office off Mombasa road on Tuesday as The CEO was kick out of his office by a group that appeared to be the grand children of the retailer’s founder Joram Kamau.
The group appeared to be enforcing a termination letter signed by four directors on January 23rd 2015.
“We the Board of Directors of Tusker Mattresses LTD have terminated your services as the CEO of our company with immediate effect,” reads part of the letter seen by Royal Media Services but could not independently verify.
Four directors Hannah Kamau, Yusuf Mugweru Kamau, Mary Njoki Kamau and Kenneth Njoki Kamau signed the letter.
Part of the reasons cited for his termination include conflict of interest, lack of respect towards stakeholders and directors as well as poor performance of the company.
Githua was hired in May to steer the retailer, joining from SME financing company Speed Capital and becoming the first non-family member CEO of Tuskys. Prior to serving as CEO Githua had worked as head of audit at Tuskys between 2012 and 2012.
The 26-year-old retailer hired Githua as part of the process of injecting professionalism into its operations as it prepared to list on the Nairobi Securities Exchange.
From the onset it was apparent he would have a hard time taking full control of the company, as siblings wrestled for control of the company.
Yusuf Mugweru had sued his brother Stephen Mukuha for unilaterally appointing the CEO without the approval of other directors.
The children of the founder Joram Kamau wholly own Tuskys. Yusuf Mugurwe Samuel Kamau, Sam Gatei and George Gachwe each hold 17.5% stake in Tuskys. However, failure to resolve family disputes has made the running of the company difficult.
Founded in 1990 in Rongai town, Tuskys has grown to be the second largest retailer in the country after Nakumatt with 52 branches in Kenya and Uganda.
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