Keroche sues for Ksh.10B over 'malicious' insolvency claims

In court documents, the Naivasha-based brewery—Kenya’s largest indigenous beer manufacturer—argues that media coverage of the insolvency notice has tarnished its brand, eroded market confidence, and exposed the business to long-term financial risks.

The company, which commands a 15 percent share of Kenya’s alcoholic beverages sector, says the reputational fallout is threatening its contribution to the economy.

Keroche points out that it directly employs 500 workers, sources raw materials from more than 10,000 local farmers, and generates foreign exchange through exports.

The firm warns that if left unchecked, the insolvency narrative could spark widespread consequences, including job losses, reduced government revenue, and market instability.

At the heart of the case is a liquidation petition lodged on May 23, 2025, and advertised in the Kenya Gazette on August 21, 2025. Keroche maintains the petition is “fundamentally flawed” because it is based on an invalid statutory demand.

The brewery contends that the demand, dated June 30, 2025, was improperly signed by a Deputy Registrar of the High Court in Nakuru, instead of the petitioner or an authorized agent, contrary to Section 384(1)(a) of the Insolvency Act, 2015.

“The advertisement has falsely signaled insolvency, sparking panic among stakeholders and causing irreparable reputational and commercial harm,” Keroche argues, branding the petition as an abuse of insolvency law meant to coerce debt recovery.

The petitioner in the case is identified as Sam Kruss Shollel, a former Keroche employee, whom the brewery accuses of acting in bad faith.

The company cites a pattern of what it calls vexatious litigation, including a contempt application filed and later withdrawn in August 2025.

Through lawyer Karuku Wachira, Keroche is urging the court to issue an immediate injunction stopping further dissemination of the insolvency notice.

It also seeks KSh10 billion in compensation to cushion against what it terms “far-reaching and malicious consequences” of the petition.

The case is expected to test the balance between creditor rights and protections for companies against reputational attacks under Kenya’s insolvency framework.