High Court Judge James Aaron Makau also awarded Maxam Sh1.7 billion for loss of business. FILE PHOTO | NMG
Maxam Ltd, the distributor of Heineken beer lager in Kenya, will
continue to distribute the product after the High Court reinstated the
distribution agreement that the manufacturer cancelled.
High
Court Judge James Aaron Makau also awarded Maxam Sh1.7 billion for loss
of business after
the contract was unfairly terminated by Heineken East Africa Import Company Ltd and Heineken International B.V.
the contract was unfairly terminated by Heineken East Africa Import Company Ltd and Heineken International B.V.
“I
find and hold the valuation of the lost business in the sum of
Sh1,799,978,868 remains uncontroverted by the defendants and as such, an
admission on their part,” said Justice Makau.
The
Dutch brewer has been supplying its Heineken beer in the Kenyan market
through local distributor Maxam Ltd, which is associated with
businessman Ngugi Kiuna who has held the franchise since 2007.
Lawyer
Philip Nyachoti had told the court that Maxam had been distributing the
product long before a formal distribution agreement was signed on May
21, 2013.
The judge said the formal deal required Maxam to invest in infrastructure.
“I find the promise and arrangement of automatic extensions
served as motivation for Maxam to keep performing in accordance with the
assigned obligations resulting to investing heavily in the business,”
justice Makau.
He also said the firms illegally and unfairly purported to unilaterally terminate the agreement.
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