The High Court of Kenya has put a halt to the attempted seizure of several alcoholic products from the market, including Kingfisher and Hunters’ Choice whisky, manufactured by Kenya Wine Agencies Limited (KWAL). Justice Chacha Mwita granted the order following an urgent application filed by KWAL, effectively safeguarding the products pending the full hearing and determination of the case.
The court’s decision came as a relief to both consumers and distributors of KWAL products, which include some of Kenya’s most popular alcoholic brands such as Hunters’ Choice whisky, Kibao vodka, Viceroy brandy, Best Cream, Best Whisky, and Best Vodka. KWAL, a longstanding player in the alcoholic beverages industry since 1969, operates depots across major cities, including Nairobi, Mombasa, Nakuru, Kisumu, Nyeri, and Eldoret.
The Legal Challenge
The legal battle stems from actions taken by a multi-agency task force composed of various government bodies including the Kenya Bureau of Standards (Kebs), the National Authority for the Campaign Against Alcohol and Drug Abuse (NACADA), the Kenya Revenue Authority (KRA), the Anti-Counterfeit Agency, the Inspector General of Police, and the Ministry of Interior.
This task force had been formed to combat the proliferation of illicit alcohol in the Kenyan market. However, KWAL alleged that its certified products were wrongfully targeted. Through their lawyer, Peter Wanyama, KWAL informed the court that their products had been subjected to rigorous inspections and were cleared for sale by the government.
Wanyama further revealed that despite this clearance, KWAL had been facing threats of closure since April 2024. These threats, he said, were made by individuals purporting to be officers from Kebs, who were part of the government’s crackdown on illicit alcohol. In September, Kebs officers reportedly visited several KWAL distributorship outlets and seized products, despite their compliance with the regulatory requirements.
Government Clearance Overlooked
Wanyama expressed frustration over the contradictory actions of the state agencies involved. He highlighted a letter dated May 14, 2024, from the Principal Secretary for Interior, which clearly informed KWAL’s managing director that the company’s products had been found compliant following inspections. The letter also gave KWAL the green light to resume production.
Despite this, KWAL’s products continued to face seizure in what the company argues is an unlawful move. Wanyama stressed to the court that the seizure is not justified, given that the PS’s decision to allow the company to operate has not been revoked or challenged. He argued that KWAL’s business operations were being unfairly disrupted without valid legal grounds.
Court’s Intervention
In his ruling, Justice Chacha Mwita criticized the failure of the respondents, including Kebs and other involved agencies, to appear in court to address the concerns raised. The court had previously instructed the respondents to file their responses and present their case, but only the Attorney General appeared at the hearing.
“I have taken into account the concerns raised and the fact that the respondents were allowed to come and address us on issues raised, but they have given this day a wide berth even after service,” Justice Mwita remarked during the hearing.
As a result, the judge issued an order stopping the seizure of KWAL’s certified alcohol products by the multi-agency team until the full hearing of the case. The court further directed that the respondents file their responses within 14 days, with the next hearing date set for December 4, 2024, for the parties to highlight their submissions.
Significance of the Ruling
This ruling is a significant victory for KWAL, as it protects the company from potentially damaging disruptions to its business. KWAL has been a cornerstone of Kenya’s alcoholic beverage market for decades, and any unlawful or arbitrary interference with its operations would have far-reaching consequences for the company, its employees, and its distributors across the country.
For now, KWAL can continue distributing its products, including Kingfisher and Hunters’ Choice, giving both the company and consumers a sense of relief. However, the ongoing case will be closely watched by stakeholders in the industry as it touches on important regulatory issues and the balance between combating illicit alcohol and safeguarding legitimate businesses.
As the case progresses, all eyes will be on the December hearing, which could set a precedent for how state agencies engage with established manufacturers in the future.
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