Keroche Demands Sh10 Billion in Damages from Ex-Employee Over ‘False Insolvency Narrative’

Nakuru, Kenya — September 24, 2025, 11:00 EAT.

Keroche Breweries has filed a lawsuit seeking KSh 10 billion in damages from a former managing director, accusing him of publishing false insolvency claims that allegedly damaged the firm’s reputation, disrupted operations, and caused financial harm.

The Latest

• Keroche claims that the brewing company’s name was improperly dragged into insolvency following a liquidation petition filed by its ex-employee, Sam Kruss Shollei. The notice was advertised in the Kenya Gazette on August 21, 2025. Keroche argues the petition is based on an invalid statutory demand. 

• The company contends the demand (dated June 30, 2025) was not signed by the creditor or an authorised agent but by a Deputy Registrar of the High Court in Nakuru — which Keroche says contravenes Section 384(1)(a) of the Insolvency Act, 2015. They say this procedural flaw renders the petition fundamentally defective. 

• Keroche’s lawyers have applied to court for an injunction to stop further dissemination of the insolvency advertisement and to halt any related actions that may exacerbate reputational damage. The brewer seeks compensation for what it termed “far-reaching and malicious consequences.” 

Context in Brief

• The case springs from a prior dispute: Sam Kruss Shollei (ex-MD) was awarded KSh 52.5 million in a 2022 judgment for wrongful dismissal, salary and benefits, of which about KSh 45.55 million remains unpaid after partial payments. He filed a statutory demand seeking this amount under the Insolvency Act. 

• When the statutory demand was not satisfied, Shollei filed a liquidation petition in May 2025. The petition and its advertisement in the Gazette raised concerns among Keroche about its legal validity and commercial impact. 

• Keroche had already obtained a court order (in Nakuru High Court) granting interim protections halting the liquidation petition and restraining further advertisement while the legal challenges proceed. 

Law, Policy, and Process

• Insolvency Act, 2015: Governs statutory demands, liquidation, duties of creditors. Section 384 mandates that statutory demands must be correctly signed by the creditor or authorised agent. Failure to comply with such formalities can invalidate statutory demands. 

• Gazette Notices: Publishing a notice of liquidation in the Kenya Gazette creates public knowledge of the petition, which can have severe commercial consequences. If incorrect, it may be grounds for defamation or damages.

• Remedies Available: Keroche is seeking:

  1. An injunction to stop further publication of the liquidation petition or insolvency notice.

  2. A full trial on the merits of whether the demand was valid.

  3. KSh 10 billion in damages for reputational harm, financial losses, panic among creditors, suppliers, investors etc. 

Voices and Stakeholders

• Keroche Breweries: Calling the petition “malicious,” arguing that Shollei’s action is in bad faith and constitutes misuse of the insolvency law. Their lawyers assert that the company has been harmed commercially and reputationally. 

• Sam Kruss Shollei (former MD/petitioner): Through earlier filings, he claims non-receipt of his dismissal award and that Keroche has not fulfilled a lawful judgment debt. He insists that he followed legal procedure. 

• Legal Observers: Some lawyers say this case will test how strictly courts interpret formal requirements in insolvency petitions, especially concerning statutory demands and signatories. Others point out the risk businesses face from reputational damage even before court decisions are made.

Evidence & Data Box

Risks, Implications & Scenarios

• For Keroche: If the court rules in its favour, it may halt what it regards as misuse of insolvency procedures, restore reputational stability, and deter similar actions. On the other hand, the success of its damages claim is uncertain—courts usually require a high standard of proof for reputational damage and causation.

• For Ex-Employee / Creditor Rights: If Shollei’s petition is disallowed on procedural grounds, it could reduce confidence among those seeking enforcement of labour or contractual awards. But courts might balance the need for procedural compliance with substantive justice.

• Precedent for Insolvency Law in Kenya: This case is likely to clarify how strictly formal requirements (like who signs a statutory demand) will be enforced. It also may define the limits of reputational harm claims tied to insolvency notices.

What We Don’t Know Yet

• Whether Keroche’s KSh 10 billion figure for damages has been substantiated with detailed financial losses (e.g., lost contracts, stock devaluation, credit terms lost).

• What the former MD’s legal defence will be in response to the damages claim.

• Whether another liquidation petition or statutory demand will be made, perhaps correctly procedurally, or whether others will join as creditors.

• How this case might influence creditor behaviour or prompt reforms in how insolvency and statutory demands are handled by courts and registrars.

Timeline

• May 23, 2025: Sam Kruss Shollei files statutory demand and/or related insolvency petition over non-payment of dismissal award. 

• June 30, 2025: Statutory demand dated this date issued. 

• August 21, 2025: Liquidation petition advertised in Kenya Gazette. 

• September 11, 2025: High Court (Nakuru) grants Keroche interim orders halting advertisement and any further steps in liquidation pending legal clarity. 

• September 24, 2025: Keroche formally seeks KSh 10 billion in damages via court filings over the false insolvency narrative. 

What to Watch

• The High Court’s decision on whether to issue the full injunction permanently – stopping further dissemination of the insolvency notice.

• Submission of evidence from Keroche to prove financial and reputational damage—and whether Shollei can successfully counter these claims.

• Whether procedural reforms (by courts, IE registrars, or legislation) are proposed to tighten requirements for statutory demands to reduce misuse.

• How this case might influence creditor-company relations, especially for labour  or employment award claims.

Editor’s Note: This article is based on reports by Citizen Digital (“Keroche sues for Ksh.10B over ‘malicious’ insolvency claims”) and Capital News. It draws on court filings cited in Naguru High Court / Nakuru High Court records.

Corrections / Updates: Will update if either party files further affidavits or court orders.