A director of the popular Nairobi restaurant Ranalo Foods Dala Limited has pleaded not guilty to a dozen criminal charges linked to what prosecutors describe as a forged attempt to seize control of the company through falsified documents.
Stella Anne Mutheu Osewe, one of the firm’s co-directors, appeared before Principal Magistrate Benmark Ekhubi at the Milimani Law Courts, facing 12 counts of forgery, uttering false documents, and making false statements regarding the alleged resignation of her co-director, William Osewe Guida.
The charges, filed by the Office of the Director of Public Prosecutions (ODPP), stem from ongoing internal wrangles within the ownership of Ranalo Foods, one of Nairobi’s most recognized eateries, located in the city centre and known for its traditional Luo cuisine.
Background of the Corporate Dispute
According to court documents, the case arises from a bitter fallout between two family-linked directors of Ranalo Foods — William Osewe Guida and Stella Osewe — over the company’s control and shareholding structure.
Prosecutors allege that in August 2022, Stella Osewe forged and submitted falsified documents purporting to show that Mr. Guida had voluntarily resigned from the company and transferred his shares to other directors.
The alleged documents included a resignation letter, an affidavit of resignation, and an affidavit of share transfer, all purportedly bearing Mr. Guida’s forged signature.
The prosecution claims the falsified records were then submitted to the Director of Business Registration Services in an attempt to formalize Guida’s removal from the company’s records — effectively ousting him from Ranalo Foods’ management.
Twelve Charges Filed Against the Director
According to the detailed charge sheet, Counts I, VII, and IX charge Ms. Osewe with Forgery under Sections 345 and 349 of the Penal Code, concerning the creation of three fraudulent documents:
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A resignation letter allegedly signed by Guida.
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An affidavit of resignation.
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An affidavit of share transfer.
Further, Counts VI, VIII, and X accuse her of Uttering False Documents under Section 353 of the Penal Code for knowingly submitting the same forged documents to the Registrar of Companies.
Two additional forgery charges — Counts II and XI — relate to fabricated board meeting minutes dated August 1, 2022, purporting to record Guida’s resignation.
Finally, Counts III and XII charge her with uttering those false minutes to the registrar’s office, while Count IV charges her with Making a False Statement by a Company Official under Section 329(a) of the Penal Code by falsely declaring Guida’s resignation in official company filings.
Defense: “A Family Dispute, Not a Crime”
Appearing for her plea, Ms. Osewe denied all charges, with her defense counsel insisting that the matter was a family misunderstanding, not a criminal enterprise.
Her lawyer emphasized that she had cooperated fully with investigators, voluntarily surrendered herself to the police, and was engaged in family-led mediation with the complainant.
“This is a sensitive family matter involving business partners who are relatives. The ongoing mediation could resolve the issue outside the criminal court,” the defense submitted.
The defense urged the court to grant lenient bail terms, arguing that Ms. Osewe was neither a flight risk nor a threat to witnesses.
Prosecution: “Forgery Undermines Corporate Integrity”
The prosecution, led by the ODPP, opposed the request for leniency, noting that the charges were serious offences that could undermine the integrity of corporate governance in Kenya.
Prosecutors maintained that the accused’s actions, if proven, represented a deliberate effort to usurp company control through deceit, and that the documents presented to government offices had far-reaching legal implications.
They asked the court to impose reasonable bail conditions to ensure the accused’s attendance at all future hearings.
Court Grants Bond, Sets Mention Date
After hearing both sides, Principal Magistrate Benmark Ekhubi granted a bond of KSh 500,000 or an alternative cash bail of KSh 250,000, noting that the accused had voluntarily presented herself to authorities and had shown good faith during investigations.
The court also directed both parties to continue with reconciliation talks while preparing for pre-trial proceedings.
The matter will be mentioned at a later date for pre-trial directions and to assess progress on the mediation efforts between the parties.
Legal Experts: Boardroom Disputes Increasing in Kenya
Legal analysts have noted that this case reflects a growing trend of corporate fraud and boardroom wrangles in Kenya’s hospitality and SME sectors.
Corporate law expert Amos Mboya told CourtNews.co.ke that many local businesses lack formal shareholder agreements, making them vulnerable to internal manipulation through forged records.
“Family-run enterprises often operate on trust rather than structured governance,” Mboya said. “When disputes arise, documents become powerful weapons, and that’s where forgery allegations emerge.”
He added that Kenya’s Companies Act (2015) and Penal Code criminalize falsification of company records, with penalties of up to three years’ imprisonment for forgery and related offences.
The Bigger Picture: Lessons for Corporate Governance
The Ranalo Foods case underscores the importance of transparent corporate management, accurate record keeping, and ethical leadership in Kenya’s growing business sector.
As the case proceeds, it is expected to highlight how forgery and document tampering can destabilize successful family-owned enterprises, and how the courts interpret such internal disputes that border between civil and criminal law.