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Court Temporarily Halts Sh1.7 Billion Payment to Heineken Distributor

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 17 November 2019.

On November 17, 2019, the Nairobi High Court temporarily halted the execution of a Sh1.7 billion order against Heineken East Africa, citing the company's financial difficulties.

Justice Wilfrida Okwany granted the stay to allow Heineken to appeal against the judgement, stating that the court must balance the rights of both the applicant and respondent.

Heineken had argued that it has no assets and requested a stay to allow it to file an appeal. The court also ordered Heineken to deposit Sh1.7 billion in a reputable banking institution and in the joint accounts of two advocates for both parties within the month.

Maxam Ltd, the distributor, had sought Sh1.7 billion in special damages for the loss of business after Heineken terminated their distribution agreement. Maxam's lawyer, Philip Nyachoti, accused Heineken of deliberately declining to obey the orders issued by Justice James Makau earlier.

Heineken's lawyers argued that the company's decision to cancel the distributorship was to attract more suppliers and expand business.

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