The former wife of the owner of Nairobi’s famous eatery K’Osewe Ranalo, has won the first round in the legal battle to control the restaurant.
Commercial Court Judge Njoki Mwangi ordered businessman William Osewe Guda not to change or transfer the eatery’s bank accounts and M-pesa in a case filed by his ex-wife Anne Mutheu Osewe.
At the same time, the judge ordered Osewe not to alter the restaurant’s ownership details or deal with, selling or transfer or gifting it.
“I hereby grant the prayers sought in paragraphs 2,4,5 and 6 of the Notice of Motion dated April 8, 2025,” the judge ruled.
In her case, Mutheu alleged that the idea of putting up a restaurant was birthed when they were married.
According to her lawyer Waithaka Ngaruiya, they decided to put a company in 1997, Ranalo Foods Limited, and split their shares 50:50.
The firm was incorporated on November 26, 1997.
She claimed that everything was running smoothly until sometime in 2018 when their bliss hit a dead end.
Mutheu said they parted ways in 2022, which allegedly led to a strain in running the business.
“Initially and before the plaintiff’s separation from the first defendant and the ultimate dissolution of their marriage, the plaintiff was actively involved in the running and day-to-day management of the main business of the second defendant (Ranalo), being a renowned restaurant operated under the name Ranalo Foods situated along Kimathi Street, parklands and along Kiambu Road in Nairobi,” said Waithaka.
Mutheu alleged that after their marriage ended, Owese sidelined her from the business and blocked her from accessing information.
“The plaintiff is still a director and a shareholder,” she argued, adding that Osewe had since 2018, been running the restaurants solo.
She further alleged that she had been denied access to the restaurants and could not inspect books and statements of accounts or deal with Ranalo.
Mutheu argued that it was unfair for Osewe not to engage her as a shareholder and a director.
Stay informed. Subscribe to our newsletter
“The first defendant has excluded me from the management of the second defendant and its businesses and has blatantly refused and or neglected to avail and provide me with information relating to the general affairs of the second defendant since 2018 despite numerous requests to do so,” she claimed.
At the same time, Mutheu accused Osewe of failing to call for an Annual General Meeting or allow her to sit on the board.
She alleged that she has also been locked out from the financial affairs of Ranalo.
Mutheu claimed that she does not receive revenue or dividends arising from the business profits.
“Consequently and in light of the foregoing, the first defendant has maintained and continues to maintain unlawful stranglehold on the second defendant and its businesses and had maintained the sole control over the assets of the company,” she claimed.
She expressed fears that her name would be removed from the company’s ownership record. At the same time, she alleged that liabilities may be incurred without her consent.
Mutheu said that on December 13, 2024, she wrote to Osewe seeking documentation on Ranalo’s compliance with the law, its employees, and whether statutory deductions had been remitted on behalf of the employees.
“He has declined to provide the same, and I am apprehensive that judgments may arise out of employment disputes or statutory non-compliances, and I will only get to know the same during enforcement by auctioneers and government authorities,” she claimed.
She alleged that Kenya Revenue Authority (KRA) had issued an agency notice on Ranalo’s bank accounts over tax arrears.
Mutheu wants the court to block Ranalo or Osewe from opening a new bank account.
She is seeking orders to be a mandatory joint signatory of all bank accounts and approver of all Mpesa transactions of Ranalo.
Mutheu also wants the court to bar Osewe or Ranalo from transferring or changing the restaurant’s directorship.
The other order being sought in the case is an audit report on all money transactions from 2018.
The judge directed her to serve K’Osewe with the court papers and appear before her on July 10, 2025.