The company is also seeking KSh10 billion in damages, accusing the petitioner of abusing the insolvency process.
Liquidation petition stems from employment dispute
The dispute arose after Sam Krus Shollei filed a liquidation petition before the High Court in Nakuru on May 23, 2025.
The petition seeks to wind up Keroche Breweries over an alleged unpaid settlement arising from a 2019 employment dispute between the parties.
According to court documents, the claim is based on an alleged outstanding debt of KSh75 million.
Keroche challenges validity of statutory demand
Keroche’s defence focuses on the statutory demand that preceded the liquidation proceedings.
The notice, dated June 30, 2025, required the brewery to settle the alleged debt within 21 days.
However, the company argues that the demand is legally defective because it was signed by the Deputy Registrar of the High Court instead of the creditor or an authorised representative.
Through its lawyers, Keroche contends that the Insolvency Act requires statutory demands to be issued by the creditor or a duly authorised agent.
The company is therefore asking the court to declare the statutory demand invalid and strike out both the liquidation petition and the related public notice.
Kenya Gazette notice challenged
Keroche has also challenged the publication of the liquidation petition in the Kenya Gazette on August 21, 2025.
In affidavits sworn by Chief Executive Officer Edward Mwangi Muigai and advocate Karuku Wachira, the company argues that the gazette notice has caused widespread reputational and commercial harm.
According to Keroche, the publication created the impression that the company was insolvent, triggering concern among suppliers, lenders, business partners, and other stakeholders.
The brewery says it employs more than 500 people directly while supporting thousands of others through its supply chain.
Company seeks KSh10 billion in damages
Beyond defending the liquidation proceedings, Keroche has filed a Notice of Motion seeking KSh10 billion in reputational damages.
The company is also asking the court to compel Sam Krus Shollei to publish a public apology with similar prominence to the liquidation notice.
Keroche maintains that it remains financially solvent and continues to operate normally.
Brewery says debt remains disputed
The company argues that the alleged KSh75 million debt is the subject of an ongoing appeal before the Court of Appeal.
According to Keroche, the liquidation petition is being used as a coercive tool to force payment despite the dispute remaining unresolved.
The brewery further points to the petitioner’s withdrawal of a separate contempt application in the underlying proceedings as evidence that the insolvency process is being improperly used.
The High Court is expected to determine whether the statutory demand complied with the Insolvency Act and whether the liquidation petition can proceed.
