Naipa Supermarket has filed a court application seeking to prevent New Kenya Co-operative Creameries Limited (KCC) from selling its assets or transferring money from its bank accounts as it pursues recovery of Sh420 million through arbitration.
The supermarket wants the court to issue orders safeguarding KCC’s factories, machinery, vehicles, equipment and other properties against sale, transfer, leasing, charging or any other form of disposal until the dispute is resolved. It is also seeking restrictions on withdrawals and transfers from KCC’s bank accounts, arguing that the dairy processor’s ongoing restructuring plans could threaten its ability to recover the money owed.
Naipa is asking the court to compel KCC to provide security for the Sh420 million claim within 14 days of being served with the orders. The proposed security would be in the form of an irrevocable bank guarantee from a reputable Kenyan commercial bank or a cash deposit into an interest-bearing joint escrow account held by the parties’ advocates.
Should KCC fail to comply, the supermarket wants the court to authorise the attachment of the company’s factories, real estate and fixed assets pending the determination and enforcement of the eventual arbitral award.
The dispute stems from a distribution agreement signed by the two parties on January 1, 2022, which provides for arbitration under Clause 18(b) as the mechanism for resolving disagreements. According to Naipa lawyer, Phillip Nyachoti, arbitration proceedings were initiated in line with directions issued by the court on December 1, 2025. The hearings are scheduled for November 5 and 18, 2026.
The supermarket argues that recent government announcements concerning the restructuring and modernisation of KCC have raised concerns about the safety of its potential recovery before the arbitration process is concluded.
In its application, Naipa points to policy measures announced by President William Ruto during the Agriculture and Food Systems Transformation Summit held at the Jamhuri Park ASK Showground in Nairobi from October 7 to 9, 2026.
Among the proposals cited is a planned government settlement of approximately Sh8 billion in outstanding debts and liabilities owed by KCC through a forthcoming Supplementary Budget. The application also refers to proposed changes involving the modernisation of the company’s milk processing plants, machinery and supply infrastructure, alongside the reorganisation of its financial operations and payments to dairy farmers.
Naipa contends that these developments create a risk that KCC’s assets or funds could be transferred, disposed of or otherwise depleted before the arbitration proceedings are completed. The supermarket argues that such transactions could make it difficult to recover any amount awarded in its favour, potentially undermining the purpose of the arbitration process.
It maintains that it moved to court promptly after the government announcements to ensure KCC’s assets remain available until the dispute is determined. The application is supported by an affidavit sworn by the supermarket’s managing director, Anthony Munene Kibetu.
Naipa has also asked the court to certify the matter as urgent and consider the application ex parte in the first instance, without initially requiring service on the other party.
The court is yet to determine the application.
