High Court upholds Bia Tosha exclusive EABL distribution deal

The High Court will hear and determine a case filed in court by East African Breweries Limited (EABL) against Bia Tosha.

This is after Justice Louis Onguto declined to refer the matter to arbitration arguing that Bia Tosha had raised some constitutional issues which have to be determined by the court. The judge also declined to lift a court order barring the appointment of other beer distributors to routes already covered by Bia Tosha.

In the case filed at the Milimani law courts  Bia Tosha claims that  having propriety rights to the 22 routes was granted by EABL in 2006, arguing that it has paid Sh38 million to beer maker as goodwill intended to secure exclusive operation in the territories.

But in quick rejoinder, EABL has said it will appeal a ruling. EABL had argued that the dispute between the parties be subjected to arbitration. However, the court directed that the matter be heard as a constitutional petition.

However, Justice Onguto declined to interfere with the distributorship agreement between the parties. He also declined to issue conservatory orders against UDV Kenya in relation to Senator Keg beer.

The 22 routes covered by Bia Tosha include Namanga, Bissil, Kajiado, Kitengela, Athi River, Industrial Area, South B, Nairobi West, Kenyatta, Lang’ata, Rongai, Kiserian, Magadi, Upper Hill, Ngong Road, Hurlingham, Kawangware, Satellite, Dagoretti, UDV A, UDV B and UDV C