Equity Bank (Kenya) Limited has issued a KSh250 million bank guarantee on behalf of Heineken East Africa Import Company Limited, allowing the brewer to maintain a stay of execution in a long-running commercial dispute pending before the Court of Appeal.
The guarantee follows a ruling delivered on May 29, 2026, by a three-judge bench of the Court of Appeal comprising Justices Joel Ngugi, Nduma Nderi and Munyao Sila in Civil Appeal (Application) No. E995 of 2025, involving Heineken East Africa Import Company Limited, Maxam Limited and Heineken International B.V.
The appellate court had granted Heineken’s application to suspend execution of orders issued by the High Court in Commercial Case No. 29 of 2016, but directed the brewer to provide security of KSh250 million in the form of a bank guarantee in favour of the respondents within 30 days. In the guarantee document, Equity Bank committed to pay the respondents the guaranteed amount if Heineken’s appeal is ultimately unsuccessful and the Court of Appeal orders the company to satisfy the judgment.
“We hereby irrevocably and unconditionally guarantee that we will, notwithstanding any objection which may be made by our customer, pay to you within five business days of our receipt of the demand, such an amount as may be required by a valid court order, not exceeding Kenya Shillings Two Hundred and Fifty Million only,” the bank stated.
The guarantee can only be enforced upon presentation of a demand accompanied by a court order confirming that Heineken’s appeal has failed and that the company has been directed to pay an amount equivalent to the sum demanded.
Equity Bank further stated that the guarantee would remain in force until the appeal is heard and determined. It would automatically lapse if the guaranteed amount is paid or if the Court of Appeal rules in Heineken’s favour.
The dispute between Heineken East Africa and Maxam Limited dates back to 2016 and has become one of the longest-running commercial disputes before Kenyan courts. The matter arose from a business relationship between the two companies that later deteriorated, leading to litigation and a High Court decision that prompted Heineken to seek relief from the appellate court.
By granting the stay of execution, the Court of Appeal halted enforcement of the High Court orders pending determination of the appeal while protecting the interests of the respondents through the requirement for substantial security.
The issuance of the bank guarantee now clears the way for the appeal process to proceed without immediate enforcement of the High Court decision.
