Kenya: Court orders Heineken not to terminate contract with three distributors until the case is heard and determined

A court has ordered Dutch brewer, Heineken, not to terminate a contract with three companies based in Kenya, Uganda and Tanzania, Standard Media reported on February 23.

High Court Judge Erick Ogola ruled on February 22 that the firm should not terminate the deal until the case filed by Kenya's Maxam Limited, Uganda's Modern Lane Limited and Tanzania's Olepasu Limited is heard and determined.

"Pending the hearing and determination of this application, the defendants or any other person acting on their instructions are hereby restrained by an injunction from appointing any distributor for the distribution of the Heineken beer brand in Kenya, Uganda and Tanzania, being the business currently carried out by the applicants," Justice Ogola ordered.

The three contractors sued the beer maker, arguing it had no authority to cancel their licences and that it would affect their businesses. In a case filed by lawyer Phillip Nyachoti, the distributors argued that allowing the beer maker to terminate their contracts would also affect other companies from whom they have leased warehouses, lorries for transportation and sub-distributors to move the import products.

The distributors have sued Heineken International BV and its subsidiaries Heineken East Africa Import Company and Heineken Brouwerjen BV, arguing they were not given reasons why the parent company was terminating its relationship with them.

24 February, 2016