Kenya Wines Agency Limited (Kwal) has obtained a court order restraining the government agency from seizing its products and disrupting its business, pending the determination of a petition filed by the alcohol producer.
High Court Judge Chacha Mwita blocked a multi-agency team comprising the Kenya Bureau of Standards (Kebs), the National Agency for the Campaign Against Drug Abuse (Nacada), the Kenya Revenue Authority (KRA), the Anti-Counterfeiting Agency and the Ministry of Home Affairs. from seizing certified Kwal alcohol.
“I am satisfied that the petition raises genuine concerns. Therefore, I ask for two prayers in the petition,” the judge said and directed the matter to December 4 for directions.
Kwal manufactures and distributes alcoholic products including Hunters Choice Whisky, Kibao Vodka, Best Cream, Best Whisky, Best Vodka, County, Kingfisher, and Viceroy Brandy.
The company said it received verbal threats from the multi-agency team and Kebs in particular, threatening to close its depots and confiscate its alcohol products.
The company said that efforts to remove illegal alcohol from the market cannot be generalized and that if there is a plan to revoke the company’s license, there is a process, reasons are given, and the company is allowed to respond.
“On September 12, a police team was assigned to the Kwal depot in Mombasa and continued to unjustifiably seize certified products from Kwal’s distributors,” the firm said in the petition. The company, which was founded in 1969, said the disruption of business and seizure of products from the market was illegal.
“The Kenya Bureau of Standards and the entire multi-agency team cannot agree and disagree. It cannot certify the Kwal products sold and then go back and seize the same products from the market,” the company added.
In court documents, the company said it had invested more than Sh10 billion in its business, and part of that investment was traceable to the taxpayer.
The company said between April and May, the agent allegedly received verbal threats to close the business by a man called Kebs and was part of a multi-agency team, formed to stamp out illegal alcohol.
Kwal said the officers were often accompanied by uniformed police officers and never gave any information or mentioned any violations of regulations.
The manufacturer recalled that in April, Home Affairs Principal Secretary Mr. Raymond Omollo suspended the license of the second generation alcohol producer, pending verification of regulatory compliance issues.
PS then explained to Kwal in a letter dated May 14, 2024, that the company complied after inspecting the factory and the manufacturer was allowed to resume production.
The company said it continued production until September 4 when officers from a multi-agency team visited distributors’ shops and other businesses and seized their products, despite being cleared by the government.
The company said the team threatened to close its Mombasa depot and tow away trailers loaded with Kwal products, which were stationed in the coastal town.
Kwal is owned by Distell who owns 545.44 percent of the company’s shares, while the remaining 43.77 percent of the shares are owned by the Treasury through the Kenya Development Corporation (KDC) formerly the Kenya Industrial and Commercial Development Corporation.
The company said Distell is a globally renowned South African Company and producer and marketer of spirits, fine wines, and ready-to-drink ciders in Africa.
“In essence, Kwal is not a behind-the-scenes alcohol manufacturer, but a real and established company with a respectable corporate profile and market reputation spanning over 54 years,” the company said.
To support his growth agenda, Kwal said he is investing over Sh4 billion by 2022 to set up a manufacturing plant at Tatu City Industrial Park in Kiambu.
“This investment is strategic and is expected to contribute significantly to Kenya’s Gross Domestic Product (GDP) and create job opportunities in the production, distribution and sales chain,” the company added.
The manufacturer has depots in Nairobi, Mombasa, Ruiru, Nakuru, Nyeri, Kisumu, and Eldoret from where it supplies alcohol products to national distributors and consumers.
The company says it pays taxes to the government, which also regulates the business of manufacturing and selling alcoholic beverages through various agencies and legal entities.
“Of course, the sudden decision by the multi-agency team to threaten to close the depot and seize the product from the market poses an existential risk to the company,” Kwal said.
