EABL loses bid to stop contempt case

KBL managing director Jane Karuku, Nock assistant treasurer Stephen Soi and KBL marketing and innovation director John Williams.
KBL managing director Jane Karuku, Nock assistant treasurer Stephen Soi and KBL marketing and innovation director John Williams.

The hearing of contempt proceedings against senior officials of East African Breweries will proceed after a judge dismissed an objection by the giant brewer.

In a ruling, Justice Joseph Onguto refused to allow EABL's objection in a case where distributor Bia Tosha has asked the court to penalise EABL directors Drew Cowan and Jane Karuku (also Kenya Breweries chief executive). The distributor, in its suit papers claims that EABL directors disobeyed the orders of the court requiring them to continue supplying it with alcohol products.

They have been sued together with Kenya Breweries sales director Andrew Kilonzo.

Justice Onguto said the court must ensure its process is not abused.

“I also come to the conclusion that the court has the necessary remit to hear and determine the application for contempt,” he said.

Bia Tosha said EABL's refusal to supply it with products despite having been ordered to do so by the court amounts to contempt of court, and it is intended to cripple its business.

But EABL asked the court to strike out the application saying it lacks merit. The brewer said the contempt proceedings were filed in bad faith with the intention of harassing its directors.

EABL denies the claims saying an agreement between the two had already lapsed on June 3 when the alleged disobedience occurred.

“ The agreement between us and Bia Tosha expired as matter of fact on the lapse of the two months period time, neither party needed to do anything to make the agreement lapse, it automatically lapsed and the same was not renewed,” read an affidavit filed in court by legal director Nadida Rowlands.

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