E-Malt.com News article: 2055

Africa, Kenya, Nairobi: A Nairobi court ruled on January 19 that a beer distribution agreement signed between Kenya Breweries Ltd and a company in which an aide of the President is a director was breached, Daly Nation has posted recently. Natex Distributors, in a counter claim filed at the Milimani Commercial Courts, had sued KBL for unlawfully terminating an agreement signed in May 1997.

It had sought compensation for loss of business it said cost Sh1.8 million to establish and an additional Sh2.5 million to purchase vehicles through a hire purchase agreement. A director of the company, Mr Alfred Getonga, through lawyer John Katiku, had also sought compensation for the loss of business and a property that was sold by a bank to recover the debt.

However, the judge declined to award damages on grounds that the distributor did not show loss of capital expenditure.
During the hearing last year before Mr Justice Aaron Ringera, a commercial support manager examined in his evidence by Mr James Gachoka had admitted an error in the clause invoked to terminate the agreement. Mr Joseph Kariuki said the clause cited to end the distribution contract was a mistake by the officer who signed it.


20 January, 2004