Equity Bank issues Ksh.250M guarantee in Heineken court battle

Equity Bank (Kenya) Limited has issued a Ksh.250 million bank guarantee on behalf of Heineken East Africa Import Company Limited, paving the way for the brewer to maintain a stay of execution in a protracted commercial dispute pending before the Court of Appeal.

The guarantee was issued pursuant to a ruling delivered on May 29, 2026, by a three-judge bench of the Court of Appeal comprising Justices Joel Ngugi, Nduma Nderi and Munyao Sila in Civil Appeal (Application) No. E995 of 2025, Heineken East Africa Import Company Limited v Maxam Limited and Heineken International B.V.

The appellate court granted Heineken's application for a stay of execution of orders issued by the High Court in Commercial Case No. 29 of 2016, but directed that the company furnish security in the form of a Ksh.250 million bank guarantee in favour of the respondents within 30 days.

In the guarantee, Equity Bank undertook to pay the amount to the respondents should Heineken's appeal ultimately fail and the Court of Appeal order the company to satisfy the judgment.

"We hereby irrevocably and unconditionally guarantee that we will, notwithstanding any objection which may be made by our customer, pay to you within five business days of our receipt of the demand, such an amount as may be required by a valid court order, not exceeding Kenya Shillings Two Hundred and Fifty Million only," the bank stated in the guarantee document.

The guarantee is payable upon presentation of a demand accompanied by a court order confirming that Heineken's appeal was unsuccessful and that the company had been directed to pay an amount equivalent to the sum demanded.

The bank further stated that the guarantee would remain valid until the hearing and determination of the appeal and would automatically lapse either upon payment of the guaranteed amount or if the Court of Appeal rules in favour of Heineken.

The dispute between Heineken East Africa and Maxam Limited has been one of the longest-running commercial battles in the country's courts, having originated in 2016.

The case stems from a commercial relationship between the parties that later soured, culminating in litigation and a High Court decision that prompted Heineken to seek intervention from the appellate court.

By granting the stay of execution, the Court of Appeal effectively suspended the enforcement of the High Court orders pending the determination of the appeal, while at the same time safeguarding the interests of the respondents through the requirement for substantial financial security.