Oil marketer Vivo Energy Kenya Ltd has sued a Mombasa-based company for allegedly failing to settle Sh46.9 million debt for petroleum products supplied.
In a case filed at the High Court in Mombasa, the oil marketer claimed that it signed a deal on September 1, 2020, to supply the products to Weslyn Logistics Limited for five years after which the agreement would be renewed for a duration and terms agreeable by both parties.
The oil marketer says that on diverse dates between April and June 2024 it supplied products valued at Sh48 million on credit.
“It was agreed between the parties that the money was payable within 30 days from the month of supply,” the suit documents state.
Vivo Energy says Weslyn Logistics Ltd failed, refused, and neglected to pay the money within the stipulated timelines.
“By a debt settlement agreement dated September 11, 2024, the defendant expressly admitted to owing the plaintiff the sum of Sh48 million and the parties agreed that it was to be repaid in seven monthly instalments from September 2024 to March 2025,” Vivo Energy claims.
In the meantime, Vivo Energy Ltd, in its application, wants the court to enter judgment summarily against the defendant in its (Vivo Energy Ltd) favour.
The case has been fixed for hearing on April 30.
The oil marketer further says that it was also agreed between the parties that in addition to the monthly instalments, there would be reviews on debt settlement in three interval periods.
“Additionally, it was agreed that the debt settlement agreement, when executed, would constitute binding obligations of each party in accordance with their respective terms,” part of the case documents state.
Vivo Energy says that on November 12, 2024, the defendant remitted to it Sh1.1 million thereby reducing the amount to Sh46.9 million.
It further says that in breach of its obligations under the debt settlement agreement, the defendant failed, neglected, and refused to remit any of the instalments as and when they fell due thereby necessitating the filing of the case.
“Demand has been made and the notice of intention to sue given but the defendant has failed, refused and neglected to pay the said amount or any part thereof,” part of the suit documents state.
The plaintiff wants judgement entered against the defendant for Sh46.9 million together with interest at commercial rates from November last year until payment in full.
It argues that the defendant has not at the time of filing the application filed a defence and that in any event has no defence capable of resisting its (plaintiffs) claim.
