Keroche Breweries loses bid to stop liquidation in Sh45 million case

Keroche Breweries has lost a bid to halt liquidation proceedings initiated by former Managing Director Sam Shollei, who was awarded Sh45 million for wrongful dismissal.

In March 2023, Keroche filed an application before Nakuru Employment Court Judge James Rika, seeking a stay of execution on the Sh45 million award.

The court, however, declined the application.

Shollei was employed as the Managing Director on July 10, 2017, with a gross salary of Sh2.5 million, which was set to take effect on October 1, 2017, for a four-year term.

Due to political instability in the country, Shollei's start date was postponed to January 2018, during which he was to receive half his salary as stipulated in his contract.

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On February 20, 2018, Chief Executive Officer Tabitha Karanja allegedly left the country with the chairman for six months, while Shollei was acting as CEO.

He reportedly sent emails to Karanja updating her on the company’s progress.

Subsequently, she threatened to terminate his contract, claiming he was not aligning with Keroche’s agenda at the executive level.

Shollei requested a meeting in November 2018, but Keroche was reportedly displeased with the proposed date.

After going on leave on October 29, 2018, he was denied access to the company upon his return in November.

His assistant then handed him a cheque for Sh7 million as terminal dues, but no explanation for his dismissal was provided, nor was he subjected to any disciplinary process.

After a verbal agreement, Keroche was to pay Shollei Sh250,000 per month; however, they failed to comply, prompting him to file a case in court seeking Sh95 million.

Keroche claimed that Shollei disagreed with the policies and ideologies of top management and that he had been disrespectful towards the company.

In the end, he was awarded Sh45 million for damages, but Keroche did not pay him following the judgment in 2022.

Keroche's appeal against the verdict was rejected.

The company argued that allowing the orders would prevent auctioneers from seizing their assets, which could disrupt business operations.

However, Shollei contended that Keroche was aware of the taxation proceedings, as they had filed submissions regarding it.

The CEO allegedly approached Shollei with a proposal to settle the decretal sum in instalments, suggesting payments from January to July 2024.

By February 2023, the decretal sum had grown to Sh56,921,993, which remained unpaid and led Shollei to attempt to attach Keroche’s assets.

However, police officers from Naivasha, who accompanied the auctioneers, were recalled by their supervisor.

The court questioned why Keroche sought leave three years after the judgment, claiming ignorance of taxation issues despite filing submissions on taxation.

The court noted, “The record suggests that the application filed by Keroche in March 2025 is merely intended to delay execution of the decree.”