A Dubai-based firm has sued a Kenyan gold-trading company and demanded a refund of more than Sh63 million it paid for the precious metal in June but was never delivered as agreed.
SH Trading DMCC claimed that it paid $489,950 (Sh63.24 million) for the purchase of 700 kilogrammes of gold to be delivered in Dubai on June 5, 2024, by Kerongwe & Sons General Traders Ltd.
The Dubai firm has sued the Kenyan firm and its chief executive officer John Kerongwe Mwita for damages suffered following the breach and loss of business as well las the refund pf the millions.
“It is the plaintiffs case that pursuant to the Purchase Agreement For CIF Sale of Gold Bars the defendants breach has resulted in the plaintiff losing a budgeted line of 700Kg of gold a business valued at $28,000,000 (Sh3.61 billion) hence its supply chain has been massively disrupted occasioning serious gaps to its manufacturing lines which now have to contend with failed deliveries,” SH Trading DMCC says in court documents filed by lawyer Kenneth Amondi.
The Dubai firm said it engages in the purchase and importation of gold as an end user for use in its medical sector.
The firm said Mr Mwita was to it through contacts at the Kenyan Ministry of Mining.
