Kenya: Supreme Court declines Heineken bid to halt Sh1.8bn award to local distributor

The Supreme Court has declined to suspend an order that directed Dutch beermaker Heineken to pay local distributor Maxam Limited Sh1.8 billion as special damages for loss of business after its distribution agreement was terminated, The Star reported on June 20.

The Court of Appeal in a judgment issued on May 24 upheld a decision that awarded Maxam Limited Sh1.8 billion as special damages.

Justices Pauline Nyamweya, Abida Ali-Aroni and John Mativo said Heineken E.A and Heineken B.V should pay the monies after breaching the Kenya Distribution Agreement.

But the beermaker in a notice of motion dated June 1 moved to the Supreme Court to stay the execution of the judgment pending its appeal.

Through lawyer Fred Ngatia, the firm said its petition of appeal raises substantial grounds that would justify reversal of the judgment of the appellate bench.

"The petitioner did procure a bank guarantee for the decreed sum of Sh1,799,978,868 while the dispute was pending in the Court of Appeal. The guarantee can now be called up by the second respondent at any time. Once the payment is effected, the sum will not be within reach of this honourable court," Heineken said.

Maxam is listed as the second respondent in the appeal with Heineken International as the first respondent.

However, in its directions issued on Thursday, June 20, the Supreme Court declined to stay the judgment but certified the matter urgent.

The court's deputy registrar Nelly Kariuki directed the respondents to be served immediately and gave them seven days to respond.

"The petitioner to file and serve a rejoinder if need be which may include supplementary submissions within seven days upon service," she said.

The case will be mentioned virtually on July 5 for further directions.

Meanwhile, Heineken has dropped its lawyers from LJA Associates LLP and replaced them with senior counsel Fred Ngatia who will be acting together with ADRA Advocates.

"Any correspondence and pleadings concerning this matter should be addressed to Ngatia and Associates and ADRA Advocates LLP," the letter addressed to the court and parties in the case reads.

Maxam Limited is represented by lawyer Philip Nyachoti.

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