Keroche Breweries Limited has filed a counterclaim seeking Sh10 billion in damages against its former employee, Sam Krus Shollel, accusing him of causing reputational and commercial harm through what it terms as an unlawful insolvency petition.
The Nakuru-based brewer moved to the High Court after Mr. Shollel, who won an Employment and Labour Relations Court (ELRC) case against the company in 2019, petitioned for its liquidation over an alleged Sh75 million debt. The insolvency petition was gazetted on August 21, 2025, sparking fears about the company’s financial health.
Keroche, through lawyer Karuku Wachira of Waruiru Karuku & Mwangale Advocates, has dismissed the petition as both defective and abusive of the insolvency process. The brewer argues that the statutory demand forming the basis of the case was invalid because it was signed by a Deputy Registrar of the High Court in Nakuru rather than by Shollel or his authorized lawyer, as required by Section 384(1)(a) of the Insolvency Act.
“The illegality of the statutory demand invalidates the entire petition, as liquidation cannot be founded on a defective document,” the company’s lawyers argue in court papers.
Keroche insists that the alleged debt is still the subject of an appeal pending before the Court of Appeal in case number E020 of 2023, and therefore cannot be enforced through insolvency proceedings.
In a sworn affidavit, Keroche CEO Edward Mwangi Muigai said the publication of the insolvency petition has already triggered panic among suppliers, threatened access to credit, and dented the company’s brand image. He estimates the financial and reputational damage at Sh10 billion, which the company now seeks to recover from Mr. Shollel as part of its counterclaim.
The company, which employs more than 500 staff and supports thousands of farmers and suppliers, maintains it remains solvent and fully operational. It accuses the petitioner of weaponizing insolvency law as a debt recovery tool rather than following proper legal channels.
Keroche is seeking court orders to strike out the liquidation petition, stop any further advertisement of the case, and compel Mr. Shollel to issue a public apology in addition to paying Sh10 billion in damages.
The High Court is expected to determine whether the insolvency petition will proceed or be dismissed, a ruling that could significantly shape the future of both the company and the brewing industry at large.
