Brewer files another petition against rival as legal battle drags in Attorney General

A brewer has gone to the High Court seeking orders to have parts of a rival's petition struck out.

In a petition, Keroche claimed East African Breweries (EABL) was engaged in restrictive trade practices. EABL wants the paragraph containing this claim struck out. Through lawyer Anthony Njogu, EABL termed the paragraph as scandalous, irrelevant and abuse of court process.

Keroche had filed a petition claiming EABL and Kenya Breweries Limited were using the Department of Weights and Measures to achieve "their wicked scheme" of shutting down Keroche.

Keroche also accused Attorney General Githu Muigai of working with EABL to frustrate Keroche. The two denied the claims and challenged Keroche to provide proof.

Keroche claimed EABL was trying to repeat the same scheme it applied on Castle Brewery Kenya Ltd, which was then owned by South African Breweries (now SAB Miller) in 2002.

SAB exited the Kenyan market in a swap deal that saw EABL also exit the Tanzanian market where it operated under Kibo Breweries in Moshi.

"The particulars of the restrictive trade practices as outlined in the 'offensive paragraphs' by Keroche are immaterial to the present main suit," EABL said.

State offices dragged into the matter said if any of their officers raided any liquor depot owned by Keroche, it was done in accordance within their statutory mandate.

They said Keroche did not provide satisfactory evidence to prove that EABL were dominant and did not show how EABL abused their dominance. "Keroche cannot rely on Section 21(3) (h) of the Competition Act as a foundation for its claims relating to restrictive trade practices," Njogu said.

In March, EABL sued Keroche for alleged illegal diversion and use of its bottles. EABL and KBL want an order stopping Keroche Breweries from using or dealing with its Summit Lager or Vienna Ice products, allegedly bottled in bottles bearing the former's trademark.