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EABL executives fight contempt punishment
East African Breweries Limited (EABL) CEO Jane Karuku during the release of the brewer’s half-year to December on January 27, 2023. Looking in is the EABL chairman Martin Oduor-Otieno.
East African Breweries Ltd (EABL) has filed a notice challenging a ruling seeking to have its senior executives charged for alleged contempt of court in a fight with a former distributor.
EABL together with parent firm--UK’s Diageo-- said it was dissatisfied with the ruling delivered on Friday by High Court judge Chacha Mwita who said the executives must appear before him for punishment in line with an order from the Supreme Court.
Justice Mwita ruled that the EABL executives including chief executive Jane Karuku were required to appear before him for punishment after terminating a beer distributorship contract against orders of the High Court.
He reckoned that the Supreme Court was categorical that Kenya Breweries Limited (KBL) and EABL had committed contempt after breaching orders of the High Court, requiring parties to maintain the status quo.
The judge said the apex court directed the High Court to consider suitable punishment for the breach.
“In doing so, the Supreme Court directed this court, on the basis of its finding on contempt, to issue suitable punishment for the contempt of court on priority basis as it deals with the petition pending before it on its merits,” said the judge.
Following the ruling, EABL issued a notice to appeal against the ruling.
“Take notice that Kenya Breweries Ltd, the 1st Respondent, EABL, the 3rd Respondent and Diageo PLC, the 4th Respondent, being dissatisfied with the Ruling of the Honourable Mr Justice E. C. Mwita delivered at Nairobi on 13 December 2024 and the consequential orders intend to appeal to the Court of Appeal against the whole of the said decision,” EABL said in the notice.
EABL reckoned that there was no order by the Supreme Court directing the High Court to determine quantum on damages to be paid to the distributor, Bia Tosha, or deny the beer maker an audience.
According to EABL, the court was required to enquire and issue appropriate punishment if there was disobedience of the order of June 29, 2016 on the distributorship deal.
The beer maker also sought to be heard at the High Court.
Justice Mwita, however, agreed with Bia Tosha ruling that EABL was required to appear before him for punishment and not a fresh hearing.
The judge went ahead and struck out the applications filed by EABL.
The distributor sought to commit the three senior officials of EABL to civil jail, for allegedly disobeying court orders in a long-running court battle.
Sh1.073bn damages
The former EABL distributor has also sought to be paid damages amounting to Sh1.073 billion.
Bia Tosha accused the beer maker of terminating its distributorship contract entered between them in 2006, and later defied a High Court order pausing the termination.
The matter escalated to the Supreme Court, which in February last year ruled in favour of Bia Tosha and sent the matter back to the High Court for a hearing of the contempt of court application against KBL officials.
