Keroche Breweries lost its bid to halt liquidation proceedings over a Sh45 million wrongful dismissal case, deepening its financial crisis. The Nakuru Employment Court rejected the company’s appeal, allowing the legal process to move forward.
The dispute began when Keroche Breweries dismissed its former Managing Director, Sam Shollei, in November 2018. Before his termination, Shollei had agreed to start his contract in January 2018, receiving half his salary due to political instability. During his tenure, tensions arose between Shollei and CEO Tabitha Karanja, especially after she left the country for six months, leaving him in charge. When she returned, she expressed dissatisfaction with his leadership and terminated his contract without a formal disciplinary process. Keroche paid him Sh7 million in terminal dues. However, Shollei believed the dismissal was unfair and filed a lawsuit, demanding Sh95 million in compensation.
The court ruled in Shollei’s favor, awarding him Sh45 million. Keroche failed to settle the amount, leading Shollei to initiate liquidation proceedings against the brewery. The company argued that stopping the process would prevent auctioneers from seizing its assets and disrupting its operations. It also accused Shollei of being disrespectful and opposing company policies. Nonetheless, the court dismissed Keroche’s claims and approved the liquidation process.
The court ruling places Keroche in a precarious financial situation. Auctioneers could seize and sell its assets, including manufacturing equipment, vehicles, and office furniture, to clear the debt. Additionally, the judgment adds to Keroche’s ongoing legal and tax challenges. Now, the brewery must find ways to resolve its financial troubles or risk collapsing.
