Kenya Breweries limited loses bid to appoint new distributor

Kenya Breweries limited has lost bid to set aside an order giving rights to Bia Tosha to distribute its products to selected routes within Nairobi and Kajiado Counties.

Justice Joseph Onguto made the ruling after Bia Tosha filed a petition claiming that the beer maker threatened to terminate its distribution contracts for 22 routes by appointing new distributors. Justice Onguto said that the beer manufacturer having entered into a contract with the distributor and also having received Sh33 million in goodwill gave Bia Tosha proprietary rights to distributes and sale KBL’s products.

Justice Onguto further said that issues raised by the distributor were constitutional in nature and the same can’t be referred for arbitration as requested by the beer maker. In declining to differ the order, the court said it could amount to rendering the petition useless.

“It’s important to preserve areas covered by Bia Tosha, pending the hearing and determination of the petition” the judge said.

Justice Onguto said that the order he issued on June 14, 2016 in favour of Bia Tosha distributors shall remain in force until the matter is heard and determined.

East African Breweries and Cogno Ventures Limited filed an application seeking to vary the order barring them from engaging in beer distribution on selected areas allegedly covered by Bia Tosha. The judge said declining to vary the order, the application by Cogno Ventures and EABL has not been dismissed, the same have to be heard inter parties.