Keroche Breweries has suffered another court setback after the Court of Appeal dismissed its attempt to block a Sh45.5 million payout awarded to former Managing Director Sam Shollei over unfair dismissal.

The amount, which was awarded by the Employment and Labour Relations Court in September 2022, has reportedly grown to more than Sh75 million after interest and costs, adding fresh pressure on the Naivasha based brewer.

Keroche had sought more time to revive an earlier application that was meant to stop execution of the award, but the Court of Appeal ruled that the company failed to properly explain a delay of more than two years.

The brewer argued that it should not be punished for mistakes made by its former advocates after its earlier stay application was dismissed in June 2023 when its lawyers failed to attend court despite being served.

Mr Shollei opposed the fresh application, saying Keroche had shown a pattern of delay and could not keep shifting blame to its lawyers while the judgment remained unpaid.

The court agreed that advocate error alone was not enough to excuse prolonged inaction, dealing Keroche another blow in a dispute that has also seen Shollei separately seek to liquidate the company over the unpaid debt.

Keroche says the case has serious implications for its operations, with court filings indicating that the company directly employs more than 500 workers and supports thousands of farmers through its supply chain.