Friday, September 29, 2023 – A Nairobi High Court has frozen a bank account held by the Rai Family after one of the brothers filed a case claiming he was kicked out as a signatory, reigniting a fierce succession battle.
Iqbal Rai moved to court to challenge his removal as a signatory to Rai Investments Ltd held at a local bank, pitting him against his elder brother Jaswant Rai, who recently was on State radar over his dealings in the sugar industry.
Iqbal has now asked the court to reinstate him as a signatory to the multi-billion empire among other prayers.
The fight is over the estate of their father Tarlochan Singh Rai who died in 2010. The younger Rai told court that his attempts to be reinstated have been ignored.
Iqbal has been a director and shareholder of the company alongside his brothers, Sarbjit Rai and Jaswant Rai since 1978.
He stated in his application that he was kicked out as a signatory in February 2023, asking the court to order for bank statement since March.
However, Iqbal is still a director of the investment firm according to records at the company registry.
The Rai family has investments spanning real estate, luxury shops, and manufacturing with operations in multiple countries including Kenya, Uganda, Tanzania, and Malawi.
The fight over the empire has often spilled into business rivalry as was the case of the fight over collapsed Mumias Sugar Company.
Sarbit Rai, who owns a sugar miller among other businesses in neighbouring Uganda, won the bid to revive the ailing miller but Janswant opposed the move, leading to a protracted legal battle.
The Kenyan DAILY POST