East African Portland problems

East African Portland problems
Published: 16 January 2004

The Kenyan High Court has stopped the East African Portland Cement from meddling in a cement distribution contract.  Commercial Court Judge Mohammed Ibrahim on Tesday issued a temporary injunction barring the cement firm from breaching a three-year contract awarded to Donholm Rahisi Stores last year.  He also issued orders compelling the company to fulfil their part of the contract signed and executed on April 2, 2003. The company will continue selling and supplying cement to the distributor in accordance with the contract until the court issues further orders.  The judge said his orders will remain in force until January 26, 2004 when the case comes up for hearing in the presence of both parties. The court heard that East African Portland Cement Limited had purported to unilaterally vary the terms of the contract to the detriment of the distributor. Justice Ibrahim was also told the monthly value of the transaction between the cement firm and the distributor was Sh200 million.