Brookside wins Sh12m in row with dairy group

Milk processing at Brookside Dairy factory in Ruiru. PHOTO | JEff angote

By SAM KIPLAGAT
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Summary

• Brookside Dairy sued the farmers in 2011 seeking damages after breaching a milk supply agreement entered in 2008. The farmers had agreed to be delivering between 10,000 and 18,000 kilos daily after Brookside installed a cooling.
• The farmers, however terminated the agreement on July 16, 2011 accusing Brookside of offering low prices for milk supplied.

A dairy self-help group in Meru has been ordered to pay Brookside Dairy Sh12 million as a condition for stopping the giant milk processor from auctioning its property over a botched milk supply deal nine years ago.

Muthimu Dairy Self-help Group had pleaded with the court to stop the giant company, which is associated with President Uhuru Kenyatta’s family, from shutting them out of business over a debt of Sh25.6 million.

The officials of the self-help group told the court that they cannot raise the amount as directed by the court and the money they generated belonged to the farmers. If not stopped, the officials said, Brookside would attach its goods and tools of trade and put them out of business.

“In the upshot, I order the applicant to pay half of the decretal sum to the respondent within 60 days of today. The balance will await the outcome of the appeal,” Justice Francis Gikonyo directed.

In 2018, Justice Gikonyo found the farmers guilty of breach of contract and ordered them to pay Brookside Sh21 million for loss of profits, after they stopped supplying milk to the processor for a period of four months.

Brookside Dairy sued the farmers in 2011 seeking damages after breaching a milk supply agreement entered in 2008. The farmers had agreed to be delivering between 10,000 and 18,000 kilos daily after Brookside installed a cooling.

The farmers, however terminated the agreement on July 16, 2011 accusing Brookside of offering low prices for milk supplied.