Madam ‘I am protected’ alias rapacious EABL MD Jane Karuku and covetous UK-based Diageo executives had their unscrupulous dealings unclothed and dry-cleaned at the Supreme Court.
Unsustainability has become a key focus for Jane Karuku-led East African Breweries Limited (EABL), the company is quickly falling and she doesn’t want to admit it. All half-thought campaigns that seek to minimize their environmental pollution and other negative impact have failed and contributed to more alcoholism in the region.
What does EABL deal with?
East African Breweries Limited (EABL) is a brewer and distiller based in Nairobi, Kenya. It is the largest producer of beer, spirits, and non-alcoholic beverages in East Africa. The company’s portfolio includes internationally renowned brands such as Guinness, Johnnie Walker, Smirnoff and Baileys, as well as local beers such as Tusker Lager, Pilsner, and WhiteCap Lager.
In addition to its core business of brewing and distilling, EABL also engages in various other activities such as marketing and distribution through its subsidiaries, and it has a significant presence in countries including Kenya, Uganda, Tanzania, Rwanda and South Sudan.
Who is the CEO of EABL?
As of January 1st, 2021, Mrs. Jane Karuku assumed the role of Group Managing Director and CEO of EABL. Prior to this appointment, she served as the Managing Director of Kenya Breweries Limited (KBL) starting in July of 2015.
She has been running this public company as if it is her home garden.
Is EABL a private company?
EABL is a publicly traded company. It is listed on the Nairobi Securities Exchange and has been publicly traded since 1936. As of May 2021, it had a market capitalization of approximately Ksh 163 billion ($1.5 billion USD). The company’s largest shareholder is Diageo, which owns a 50.03% stake in the company.
Read Here what Diageo and Karuku have been doing to investors: How Diageo used Insider Trading to con Kenyan EABL shareholders
Does EABL have promotion?
Unfortunately, there have had many negative aspects to EABL’s campaigns. One potential downside is that implementing sustainable practices have only worsened the already existing menace they created.
Whether you are a critic or not, many agree that EABL’s sustainability initiatives are merely a form of greenwashing, designed to improve the company’s reputation rather than actually making a significant impact on the environment.
EABL wants you intoxicated beyond repair. They have never and will, most definitely never invest in rehabilitation because they put money before any life. Uncontrolled advertisement of cheap liquor lead to ‘unintended’ consequences such as displacing traditional family living and exacerbating social inequalities.
“ Hello Nyakundi,
Thank you for always standing on the side of the truth. You have defended so many Kenyans from these corporate hyenas and vultures that care for no one except their looting circle.
Karuku and those jungus are supposed to be jailed for contempt of Court but now their lawyer is pleading with the court to give them more time ati they have filed a review!
Na hii watu ya Eabl are very stingy! Ile kukula wanakula hii company, itakuja baki ya kuuza busaa pekee wasipofungiwa.”
Bia Tosha is requesting that the directors of the parent company and EABL’s CEO, Jane Karuku, be imprisoned. They want her looked up for up to six months as a civil penalty.
“They ought to receive a severe reprimand in both monetary penalties and custodial sentences for its officers for the contempt,” Ms Burugu says.
Rapacious EABL MD Jane Karuku and Covetous UK-based Diageo executives Fined
The ongoing legal dispute between East African Breweries Limited (EABL) and Bia Tosha Distributors Ltd has taken a serious turn, as EABL and its parent company Diageo now face the possibility of multi-billion shilling fines. Bia Tosha previously held beer distributorship routes in parts of Nairobi, Machakos, and Kajiado before being replaced by another supplier. EABL is now accused of allegedly refusing to return these routes to Bia Tosha.
Bia Tosha has accused EABL and Diageo of disobeying a Supreme Court order that was issued last month, which directed EABL to reinstate Bia Tosha on the contested routes. The distributor is seeking fines equivalent to 20% of EABL’s sales, or Ksh39 billion ($300 million), for the alleged contempt of court.
Bia Tosha has also claimed that EABL has “sponsored” present distributors to sue at the High Court in an attempt to derail the implementation of the Supreme Court’s order. Anne-Marie Burugu, Managing Director of Bia Tosha, filed documents in court claiming that “the respondents have acted with reckless abandon and with total contempt for the authority of this court, have continued to infringe upon the applicant’s distribution areas.”
The situation is particularly serious for EABL and Diageo, as the potential fines could be financially devastating for the companies. If the fines are levied against them, it could potentially cripple their operations in East Africa.
The case has been ongoing since 2016 and has seen both parties trade accusations against each other. It remains to be seen how this latest development will affect the ultimate outcome of the case.
“…That the respondents upon conviction for the contempt, be condemned, individually and collectively, to pay a fine equivalent to 20 percent of their individual gross company turnovers as reflected in their respective 2021-2022 published accounts.”
Burugu seeks $7.7M compensation for Bia Tosha’s 7-year exclusion from EABL’s beer distribution business. Dispute began in 2016 when KBL terminated the distributorship contract signed in 2006.
EABL vs Bia Tosha
Initially, the distributor supplied alcohol to 14 areas, but the territory was later expanded to 22 larger areas. These included parts of Athi River, Kitengela, and Kawangware. EABL then repossessed some routes, such as Baba Dogo, Dandora, and Karobangi North, allowing Bia Tosha to concentrate on larger routes. Bia Tosha requested a refund of the goodwill, but KBL rejected the demand, stating that the amount was non-refundable. This refusal triggered a court battle, with the distributor accusing KBL of unfair trade practices.
The High Court referred the matter to arbitration, but Bia Tosha appealed the decision and lost again. The distributor then took the issue to the Supreme Court, which allowed their appeal on February 17th. The court directed EABL to reinstate the distributor to the contested routes. The court referred the matter back to the High Court for a contempt hearing against EABL executives.
Ms Burugu claims that EABL has continued to trade with third parties in defiance of the Supreme Court order. She is suggesting that these actions are deliberate and pre-determined. She further alleges that the cases filed by the distributors in the High Court following the Supreme Court order are identical. This, according to them is implying that they are under EABL’s direction. Distributors accused of not informing High Court of Supreme Court judgment in applications
A few days after Ms. Karuku and Andrew Kilonzo, managing director of Uganda Breweries Ltd, requested the apex court review last month’s decision, Bia Tosha filed their application. The officials claimed that the court found them guilty without a fair trial.
Bia Tosha is requesting that they be imprisoned for six months. But the EABL MD and Diageo executives have ordered their lawyers to use any means to avoid the ‘extreme punishment’.