Posta faces Sh205m suit over alleged breach of contract

A businessman has sued the Postal Corporation of Kenya (PCK) seeking more than Sh205 million for alleged breach of contract.

The Commercial Court has given PCK 15 days to file a defence in the case by Mr Gerald Kamondo Njuki, the proprietor of Geka General Supplies.

Geka says in the case filed by lawyer Titus Koceyo that PCK dishonoured a lease contract it had signed to sublet a parcel of land within Thika Municipality at a monthly rate of Sh1,846,200.

Mr Koceyo says that through a lease agreement, PCK agreed to sub-let its open space measuring 112,903 square to Geka to put up temporary stalls, M-Pesa shops, a car bazar and an open market for hawkers selling various merchandise.

Five-year lease term

Geka says PCK signed the lease agreement on July 25, 2016 for a term of five years and three months to end in November 30, 2021.

“Before commencing any activity on leased plot L.R. No ThikaMun/Blk2/840, PCK required Geka to pay a rent of  Sh1,846,200 upfront which it did,” Mr Koceyo states in the case, which has been marked for fast-tracking by the court.

Geka was further required by PCK to explain in writing and in a detailed way how it would utilise the open space.

Mr Njuki explained that he would invest in business enterprise that would earn him a monthly income of Sh3,390,000.

Mr Koceyo says contrary to the lease agreement, PCK failed to ensure the plot was vacant.

Refused to leave

In its letter send to Geka, PCK said that it had experienced problems with a former tenant who was in the said plot.

PCK said a former tenant on the plot, Nationwide Distributors, had refused to leave the premises, thereby making it difficult to complete the lease agreement with Geka.

PCK says instead of Nationwide exiting the premises, it filed a case at the Business Rent Tribunal where it obtained orders blocking its eviction.

The tribunal chairman, Mbici Mboroki, issued orders blocking PCK from kicking out Nationwide from the said plot.

The plaintiff (Geka), which named PCK as the defendant in the suit, says it has suffered huge loss due to ineptitude of the corporation.

Geka is now asking the court to compel PCK to compensate it Sh205,095,000 for loss of business and profit.

Geka is also asking the court to order PCK to pay it an unspecified amount of damages plus interests and any other relief the court deems fit.

The registry will allocate the case a hearing date.

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