How Nyama Mama Directors Are Fighting Back with a $2 Billion Lawsuit

The directors of The Good Earth Group Limited (TGEG), known for their well-regarded Nyama Mama restaurant chain, have initiated legal proceedings in the High Court, seeking Sh 2 billion in damages for what they describe as malicious prosecution.

Jayesh and Nina Shanghavi have brought a lawsuit against Victoria Commercial Bank (VCB) and its executives, alleging that the bank orchestrated a criminal case that resulted in significant reputational harm, financial setbacks, and emotional distress for the couple. Addressing the media at the Milimani Law Courts shortly after submitting their petition to Justice Fridah Mugambi, the Shanghavis asserted that their constitutional rights were severely infringed upon throughout the legal process.

They are urging the court to take into account the financial repercussions they endured, the damage to their reputation, and the disruption to their business and personal lives. This legal conflict arose from the financial challenges faced by TGEG during the COVID-19 pandemic, which resulted in overdue loans with VCB.

The couple’s attorneys, Danstan Omari and Martina Swiga, indicated that while the Shanghavis were engaged in discussions with the bank to restructure their loan, VCB chose to pursue criminal charges instead. Omari emphasized that in 2021, his clients were wrongfully charged in a criminal case that should have been addressed as a civil and commercial issue.

He further claimed that despite the couple’s attempts to resolve the situation amicably, the bank dismissed their proposals and instead launched a campaign of harassment and intimidation. The petition filed in the High Court reveals that, despite having no previous criminal history, the couple was subjected to onerous bail conditions of Sh 5 million each.

Nina, aged 61, alleges that during this tumultuous period, she was denied access to private medical care and was involuntarily admitted to Kenyatta National Hospital without her medical records, where she reportedly suffered from medical negligence.

“She was denied a vegetarian diet required for medical and cultural reasons, and her family was barred from attending to her,” said lawyer Matina Swiga, adding that the ordeal caused significant psychological and physical distress.

The court also allegedly rejected a plea to allow Nina to travel abroad for urgent medical treatment, detaining her passport despite the presentation of supporting medical documents.

Jayesh and Nina were initially charged with fraudulently obtaining a Sh 520 million loan using alleged forged securities.

However, in 2024, the Director of Public Prosecutions (DPP) applied to withdraw the charges, stating that the dispute was civil in nature and not suitable for criminal prosecution.

Milimani Principal Magistrate Wandia Nyamu subsequently marked the case as withdrawn.