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A Nakuru-based fertiliser maker, Fertiplant East Africa, has been ordered to pay Sh25 million to the New Kenya Planters Cooperative Union (KPCU) for breaching a supply contract.
High Court Judge Patricia Gichohi said KPCU was entitled to a refund after the firm failed to honour a contract to supply fertiliser.
“Judgment on admission be and hereby entered in favour of the plaintiff as against the defendant for Kenya shillings twenty-five million three hundred and seventy-nine thousand six hundred and eighty (Sh25,379,680.00) together with interest at a commercial rate of 18 percent from May 9, 2023, until payment in full,” the court said on November 04, 2024.
The case arose from a contract in March 2022, in which KPCU engaged Fertiplant East Africa Limited to supply 20,000 bags of calcium ammonium nitrate (CAN) at an agreed cost of Sh101.6 million.
The cooperative paid a deposit of Sh25.3 million, but Fertiplant failed to deliver. After multiple unfulfilled promises to refund the deposit, it filed a suit in April 2023, seeking judgment on the unpaid sum, as well as extra damages for the lost business.
KPCU termed Fertiplant’s defense as inadequate, describing it as a sham, embarrassing, and a waste of the court’s time. KPCU submitted evidence, including correspondence where Fertiplant admitted to the debt and agreed to refund the amount.
KPCU asserted that Fertiplant raised no triable issues and urged the court to strike it out, citing that the company’s non-compliance had caused it significant financial and operational disruption.
Fertiplant’s counsel argued that there were triable issues in the case and that the company should have the opportunity to defend its position fully in court.
The company contended that KPCU’s application lacks both factual and legal grounds and is flawed in law. Fertiplant further claimed that striking out the defense would contradict the constitutional principle of fair hearing as outlined in Article 159 of the Constitution.
Justice Gichohi focused on whether Fertiplant’s defense raised any legitimate issues that would warrant a full trial. She noted that the Civil Procedure Rules allow for the striking out of pleadings that lack reasonable cause or are otherwise deemed frivolous.
The court reviewed correspondence where Fertiplant had acknowledged the debt, leading Justice Gichohi to rule that Fertiplant had effectively admitted the Sh25.3 million liability.
While the judge found KPCU’s application to strike out Fertiplant’s defense largely justified, she noted that the claim for an additional Sh3 million in general damages for lost business opportunity warranted further examination.
Thus, she allowed the Sh3 million claim to proceed to trial, concluding it involved issues that should be argued in court.
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