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Court of AppealDismissedCivil Application E200 of 2025

Ngong Matonyok Wholesalers Ltd & another v Kenya Breweries Ltd & 4 others

Court of Appeal
19 December 2025
4,048 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~16 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal refused to protect two distributors' business agreements, ruling that money can compensate their claimed losses, so no injunction was granted.

What this practically means

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Executive summary

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This is a ruling of the Court of Appeal at Nairobi (SG Kairu, M Ngugi and P Nyamweya, JJA) on a Notice of Motion dated 25th March 2025 by Ngong Matonyok Wholesalers Limited and Manara Limited under rule 5(2)(b) of the Court of Appeal Rules, seeking an injunction restraining the respondents from terminating or adversely altering their distributorship agreements, and a stay of execution of the costs order in a High Court ruling (Mong'are J, 19th December 2024, Commercial Civil Suit No. E127 of 2023) that dismissed their interlocutory injunction application. The dispute arises from the long-running Bia Tosha distribution litigation, in which the Supreme Court restored 2016 conservatory orders protecting Bia Tosha's routes and later, in a clarification ruling, struck out related applications and dismissed contempt citations while remitting exclusivity and contempt issues to the High Court. The 1st to 4th respondents supported the application; the 5th respondent, Bia Tosha, opposed, contending the applicants were surrogates of the brewers, had no arguable appeal, and that the issues were res judicata before the Supreme Court. The Court found the intended appeal arguable but held the nugatory limb failed: the alleged losses turned on substantive issues pending in the High Court and were quantifiable and compensable in money given the commercial relationship. The application was dismissed with costs to the 5th respondent. The decision binds no lower court on the merits; it is an interlocutory discretionary ruling.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the intended appeal is arguable
  2. 2.Whether the appeal will be rendered nugatory unless the injunction and stay orders sought are granted

Key legal issues

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01

Arguability of the intended appeal

Holding

The intended appeal is arguable because the draft memorandum raises bona fide issues on the compatibility of the High Court contempt findings with the Supreme Court's clarification ruling

Reasoning

The Court perused the draft memorandum of appeal and found it raised issues whether the High Court's contempt findings were incompatible with the Supreme Court ruling of 26th May 2023, whether reliance on the 2016 conservatory orders was erroneous, and whether exclusive distributorship rights were lawful. It concluded the appeal was not frivolous.

p. 6
02

Whether the appeal would be rendered nugatory without the orders

Holding

The nugatory limb failed: the alleged loss turns on substantive issues pending in the High Court and is quantifiable and compensable in money by the 1st to 4th respondents

Reasoning

The appeal is interlocutory on an injunction, yet the losses alleged (termination of distributorship) depend on substantive issues still pending before the High Court, where the Supreme Court directed exclusivity and contempt issues be determined. The commercial relationship means any loss can be adequately compensated in monetary terms.

p. 7

Legal principles established

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  • An applicant under rule 5(2)(b) must demonstrate both that the intended appeal is arguable and that it will be rendered nugatory unless the orders are granted
  • An arguable appeal need not ultimately succeed; it suffices that it raises at least one bona fide issue deserving full consideration
  • Nugatory-ness turns on whether what is sought to be stayed is reversible, or if not, whether damages will reasonably compensate the aggrieved party

Court orders

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  1. 1.The Notice of Motion dated 25th March 2025 is dismissed
  2. 2.The applicants shall pay the 5th respondent the costs of the Motion

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority
majority
majority
On appeal from
High Court of Kenya at Nairobi
Commercial Civil Suit No. E127 of 2023
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules (injunction and stay of execution pending appeal)

Relief refused

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Injunction restraining termination, rescission, suspension or adverse alteration of the distributorship agreements pending appeal

Appeal arguable but nugatory limb not satisfied; loss is compensable and issues pending before the High Court

p. 7

Stay of execution of the High Court costs order pending appeal

Both limbs of rule 5(2)(b) were required and the nugatory limb failed

p. 7

Costs

The applicants shall pay the 5th respondent the costs of the Motion

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

the applicant must demonstrate, first, that the intended appeal is arguable, and secondly, that unless the orders sought are granted, the appeal will be rendered nugatory
Rule 5(2)(b) threshold
an arguable appeal is not one that must ultimately succeed, but one that raises at least a single bona fide issue that deserves full consideration on appeal
p. 4Definition of arguable appeal
Since the applicants were required to satisfy both limbs and have not, the Notice of Motion dated 25th March 2025 is accordingly dismissed, and the applicants shall pay the 5th respondent the costs of the Motion.
p. 7Disposition and costs
Orders accordingly.
p. 7Final orders

Issues in the judgment

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minor

The judgment gives the Supreme Court clarification ruling date as 23rd May 2023 in one passage and 26th May 2023 in others

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Ngong Matonyok Wholesalers Ltd & another v Kenya Breweries Ltd & 4 others", Case Analysis (2025). Civil Application E200 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/2267/eng@2025-12-19

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.