This archive report was first published on 25 September 2019.
On September 25, 2019, a Kenyan court made a landmark ruling in favor of a local trader, Jerald Kamondo Njuki, who was trading as Geka General Supplies.
The High Court commercial division judge, Rachel Ng'etich, ordered the Postal Corporation of Kenya, popularly known as Posta, to pay Sh20 million in compensation for breach of contract.
The dispute arose from a lease deal between Posta and Geka General Supplies, where the latter was supposed to sublet a parcel of land in Thika. However, Posta dishonored the agreement, and Geka was left without the premises it had applied for.
According to the court ruling, Geka had applied for a plot from Posta to develop it by building stalls and a garage at a monthly rent of Sh1,846,200 for a period of five years and six months. However, the premises were never availed to Geka as per the lease agreement.
Justice Ng'etich ruled that Posta had breached the contract and ordered the corporation to pay Sh20 million in compensation, which will attract interest at court rates. Posta was also directed to pay the costs of the litigation.
