Dealer seeks Sh150m from Nokia for contract breach

A Kenyan firm has moved to court seeking more than Sh150 million from Nokia Corporation, accusing the multinational of breaching a 2006 partnership deal.

In a case filed before the High Court, TechnoService Ltd alleges that Nokia breached the deal when it sold its business to Microsoft Corporation in April 2014. The firm further seeks damages and loss of earnings after several Nokia Service Centres, it allegedly established jointly, were taken over by Microsoft.

The firm said it suffered damages in business created over nine years during the partnership and is seeking $1,380,000 (about Sh149 million) plus damages. TechnoService will be seeking from the court a declaration a joint investment contract existed and Nokia deliberately breached it.

The company has named Nokia Corporation, Risto Siilasmaa — chairman of Nokia, Stephen Elop, who was the chief operating officer at Nokia between 2010 to 2014 and Nokia International OY — a company in Finland but registered in Kenya as defendants in the case.

Court documents stated that Nokia breached a quasi-contract arising from the partnership signed between the firms signed in 2006 and ended in April 2014.

TechnoService said it was coerced into investing in the deal by establishing Nokia care branded service centres across the country. The centres, which were jointly established were later transferred to Microsoft without its consent.

The suit papers showed that the deal was entered in 2006 through Nokia employees Piotr Labuszewski and Nicholas Maina, leading to a contractual relationship. The interaction occurred though Nokia international OY, Kenya and its employees and its subsidiaries.

The firm said it later launched a state-of-the-art service centre at Gateway Business Park, to promote Nokia brands and products.