This archive report was first published on 31 July 2019.
On July 31, 2019, the High Court awarded Ma'am Company Limited Sh1.7 billion in compensation for loss of business and special damages after Dutch brewer Heineken was found guilty of unlawfully terminating its contract.
According to the court ruling, Heineken East Africa Company Limited and Heineken International B.V terminated the contract dated May 21, 2013, without reason, which was deemed unlawful, irregular, and unprocedural.
Judge James Makau ruled that the Kenyan distribution agreement between the plaintiff and the defendants is in full force and effect as per the terms and conditions set therein.
Heineken International was also directed to take accounts in respect of loss of profits occasioned to the distributor by reason of reduced volumes of sales as well as reduced profit margins from September 2017 until the date of the judgement.
Maxam Company claimed that pricing model imposed on it by Heineken without consultation are exploitative, oppressive and unfair.
Judge Makau declared the conduct of Heineken International of offering lower market prices to a distributor of the Heineken Larger Beer, approving higher market prices on the same products and reducing their approved margins is discriminatory and is against the Constitution.
