Heineken has faced a setback after the Supreme Court dismissed its application to stop a payment of over Ksh. 1.7 billion to Maxam Limited for the termination of a contract. The court ruled that Heineken’s case did not meet the necessary threshold for consideration.
Heineken had approached the Supreme Court to challenge a Court of Appeal ruling that required the company to pay Maxam Limited the substantial amount. The dispute arose from the termination of a distribution agreement between the two parties.
Maxam Limited, through lawyer Phillip Nyachoti, opposed Heineken’s appeal. Heineken had argued that there was a risk that the bank guarantee for Ksh. 1.79 billion could be called in at any time by Maxam, and once paid, it might be difficult to recover the funds since Maxam’s assets were uncertain.
Nyachoti countered that the breach of the agreement had impacted Maxam’s financial status, and the company was entitled to the judgment issued on July 29, 2019. He insisted, “It is only just, equitable, and in the interest of justice that the petitioner’s application dated June 1, 2024, be dismissed with costs.”
The Supreme Court sided with Maxam, dismissing Heineken’s application, leaving the company liable for the payment.
