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HEINEKEN UGANDA LIMITED & ANOR
V.
MAXAM LIMITED & 5 ORS

(2017) JELR 101624 (CA)

Court of Appeal 23 Jun 2017 Kenya
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- The case concerns the distribution agreements for Heineken beer products in Kenya, Uganda, and Tanzania, involving multiple respondents, with dispute arising following the unilateral termination of the distribution contracts by the 6th re

Case Details

Suit Number:Civil Application 1 of 2017 (Ur 1/2017)
Judges:Milton Stephen Asike Makhandia, William Ouko, Patrick Omwenga Kiage
Location:Nairobi
Other Citations:Heineken Uganda Limited & another v. Maxam Limited & 5 others [2017] eKLR

RULING OF THE COURT

On 21st May 2013 the 1st respondent and the 4th respondent executed an agreement for the distribution of the Heineken beer products in Kenya. The agreement came into effect on 1st May 2013 and was to remain in force for a period of 3 years and would thereafter automatically be renewed for a period of 1 year and subsequent 1 year periods unless terminated by either party, giving the other written notice of termination within 3 months of the 3rd anniversary or 1 year extension as the case may be; that in the event that the 4th respondent wished to terminate the agreement before the end of the term, then it would discuss and agree with the 1st respondent on a fair and reasonable monetary compensation, taking into account the length of time taken by the 1st respondent in the distribution of the brand in Kenya and the profitability; that the agreement would be governed by and construed in accordance with the Laws of Kenya and that in the event of a dispute, the parties w…

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