Court blocks German pharma firm from cutting off Kenyan dealers

The firms said the supplier had failed to supply products and machines that were meant for its customers, including Nairobi Hospital, Aga Khan University Hospital and Kenyatta University Teaching, Referral & Research Hospital.

Justice Josephine Mong’are, however, noted that the firms had admitted that they were indebted to the suppliers to the tune of Sh71 million.

“I would therefore allow this application by granting the Plaintiffs an injunction as sought by them, but on condition that they make payment of Sh31,500,000, being 50 percent of the sums due and owing to the 1st Defendant,” said the judge.

Through lawyer Philip Nyachoti, the distributors had accused the manufacturer of unlawfully and abruptly terminating their distribution agreements and cutting off the supply of critical medical products. He said the move had caused the distributor severe financial loss and, at the same time, endangered public health.

Mr Nyachoti submitted that the distributors were apprehensive that the contract would be terminated unlawfully.

In response, the Kenyan subsidiaries accused the two distributors of failing to disclose to the court that they had not paid a debt of Sh71 million for supplies made and that they were not exclusive distributors of the products.

The judge said that after paying the stated amount, the supplier should not withhold the supplies of the agreed pharmaceutical products, medical machines, and equipment under the existing agreement.

The court further ordered the supplier not to directly or indirectly sell products or machines or approach the hospitals listed as Ikigai’s customers.

Justice Mong’are added that the supplier should also release the withheld high-specification medical machines to the firms, for immediate supply and delivery to Jaramogi Oginga Odinga Teaching and Referral Hospital (JOOTRH).

“In default of the Plaintiff paying the sum of Sh31,500,000 million as ordered above, their application dated May 23, shall stand dismissed," the judge said.

"And all the prayers sought therein shall be deemed vacated without further reference to this court,” added the judge.

The judge at the same time dismissed a contempt of court application against the manufacturer’s officials for allegedly supplying pharmaceutical products to Aga Khan Hospital and dialysis machines and consumables to JOOTRH.

Mr Torsten Doenhoff and Wycliffe Kiprop, the managing director and head of regulatory affairs at B. Braun Medical Kenya Ltd, denied disobeying the court order.

The two admitted to delivering one demonstration dialysis machine to the Aga Khan Hospital on May 27, 2025, before being served with the court order later on the same day.

The duo also acknowledged receiving a massive order from Ikigai Health Kenya Ltd in May for 30 dialysis machines and infusion solutions worth over Sh86 million, but the same were not in stock, and they had to check with the parent company for availability timelines.

“The Defendants have contended that the dialysis machine was delivered to Aga Khan Hospital before the orders were served upon them and that the same was just a demonstration machine as per the delivery note annexed. No evidence was tendered to counter this position by the Defendants, and it is therefore my finding that the machine was delivered before the orders of the court were served upon the Defendants,” said the judge.

On the failure to supply the dialysis machines as requested, the judge noted that the supplier had explained that they were not in a position to deliver the same because of the unavailability of the machines and the outstanding arrears.

“It is therefore not correct that the Defendants refused to fulfill the order sought by the Plaintiffs, and therefore, the Defendants were not in contempt of the court’s order,” said the judge.

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