A family trust that built the KFC franchise in Malawi has been splintered by a legal battle between brothers over who controls the company’s money.
Rashid Tayub took Afribrands Limited — the company behind the KFC franchise — to the High Court, claiming his removal from the company’s bank accounts was unfair, unlawful, and a threat to financial oversight.
Rashid and his brother Hamza were co-signatories on Afribrands’ bank accounts with full online banking access. But around March 2025, Rashid discovered he had been removed as a signatory — with no prior notice, no chance to be heard, and no board resolution communicated to him.
He petitioned the court under Section 343(1) of the Companies Act 2013, demanding restoration of his banking access, company financial records, and safeguards against unilateral changes to financial governance.
Afribrands argued the removal was justified. Hamza said Rashid had become unavailable to sign electronic payment instructions from February 2025 onward — a serious problem for a food business that needed prompt approvals to keep supplies moving.
The company also claimed Rashid had resigned as a director, though Rashid disputed resigning from Afribrands specifically.
Delivering his judgement, High Court Judge Masauko Msungama found that Rashid could bring the case, even though he wasn’t a registered shareholder.
While the shares belong to the Zulekha Trust, Malawian law extends the unfair-prejudice remedy to “any other entitled person.” As a trustee, director, and active manager with a vested interest, Rashid qualified.
But the court found the claim of unfair prejudice “largely conjectural.” Court said evidence showed Rashid was genuinely hard to reach during the critical period in February 2025.
“With a food business that needed continuous approvals, his removal was a reasonable operational measure — not oppression. There was no evidence of bad faith or financial misconduct,” reads part of the judgement
The petition was dismissed, with costs awarded to the company.
