High Court rejects Wow Beverages bid to block Namaqua Wines deal termination

KENYA – Kenya’s High Court has rejected an application by Wow Beverages to stop South African winemaker Namaqua Wines from terminating their distribution relationship, ruling that the alleged exclusive distributorship was never formalised in a written contract. 

The court declined to compel Namaqua Wines Distribution (PTY) Ltd to continue supplying wine to Wow pending determination of the main case. It also found that Wow’s claimed losses could be quantified and pursued as damages at trial.  

The ruling further dismissed Wow’s contempt application over alleged failures by Namaqua to fulfil purchase orders and discharged interim orders that had prevented termination of the relationship. 

Wow sued Namaqua in October 2025 after the South African company gave notice that its relationship with the Kenyan beverage marketer would end from November 1, citing concerns over product range, stock and payments. 

The trading relationship began in 2020 after Namaqua ended its arrangement with a previous Kenyan distributor and indicated that it would deal directly with Wow. 

Wow argued that a September 11, 2020 letter, together with the parties’ subsequent conduct, established an exclusive distribution arrangement despite the absence of a formal written agreement. 

The company told the court that it had invested more than Kes 150 million (US$1.15M) in staff, distribution infrastructure, marketing and warehousing. It valued the goodwill generated through the relationship at more than Kes 300 million (US$2.31M) and sought compensation, alongside enforcement of its claimed exclusive rights. 

Wow General Manager Anthony Kairu said the company had a legitimate and reasonable expectation that the distributorship relationship would last well over 10 years to justify this heavy investment”. 

Namaqua disputed the existence of an exclusive arrangement, saying individual shipments were governed by purchase orders that it could accept or reject. 

Namaqua Sales Manager for Africa and the Middle East Morné Koen said consignments were supplied on 90-day credit terms and that Wow had repeatedly fallen behind those terms. He said the account was placed on hold and that Namaqua was also dissatisfied with how its wines were being sold. 

Court rejects injunction 

The court found that the evidence established a trading relationship lasting about five years, but documents did not conclusively establish exclusivity. It also noted that Wow’s reported arrears of ZAR225,360, equivalent to about Sh1.7 million, had been settled on October 8, 2025, before the termination notice. (Business Daily Africa) 

However, the judge said Namaqua had repeatedly exercised discretion over whether to accept or reject purchase orders, making it inappropriate to compel continued supplies while the terms remained disputed. 

“Compelling the defendant, by injunction, to continue extending product supply and credit to the plaintiff pending trial would, in my view, curtail that apparent freedom,” the court said. 

The court also rejected Wow’s contempt application concerning purchase orders submitted on July 28, 2025. Although Namaqua knew about the orders, the judge found that the relevant order did not clearly require every purchase order to be fulfilled. 

“Contempt requires proof of a wilful and deliberate violation of a clear and unambiguous command,” the judge said. 

The court found that the purchase-order dispute and Namaqua’s explanations predated the October 30, 2025 order and therefore did not amount to defiance of the court’s directive. 

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