EABL Supply Chain Director Patrick Kamugi pours KBL Managing Director Jane Karuku a drink The Supreme Court of Kenya on Friday overturned a previous decision that barred Bia Tosha from controlling 22 beer distribution routes in Nairobi.
The court's decision comes after a prolonged legal battle between Bia Tosha, one of the largest beer distributors in Kenya, and Kenya Breweries Limited (KBL), the makers of some of the country's most popular alcoholic beverages.
The Supreme Court judges reinstated a High Court order that permitted Bia Tosha to continue distributing products in 19 areas across Nairobi.
These areas include Namanga, Bissil, Kajlado, Kitengela, Athi River, Industrial Area, South B, Nairobi West, Kenyatta, Lang'ata, Rongal, Kiserian, Magadi, Upper Hill, Ngong Road, Hurlingham, Kawangware, Satellite, and Dagoretti.
The High Court order had been ignored, prompting Bia Tosha to file contempt proceedings against KBL directors.
Bia Tosha had requested that the directors be committed to civil jail, but the contempt proceedings were never addressed, even when the case was escalated to the Court of Appeal.
The Supreme Court remitted the case back to the High Court, instructing it to "proceed to assess the suitable punishment arising out of the contempt."
The case arose from commercial agreements between Bia Tosha and KBL regarding the distribution of the latter's products.
The ruling is a significant victory for Bia Tosha, which has been fighting for the right to distribute beer in these areas for several years.
The decision will allow the company to expand its operations and increase its market share.
Bia Tosha's legal team expressed their satisfaction with the outcome, saying that they were pleased that justice had been served.