Posta ordered to pay trader Sh20 million

A court has ordered the Postal Corporation of Kenya, popularly known as Posta, to pay a trader Sh20m for breach of contract after it dishonoured a lease deal to sublet a parcel of land in Thika.

Jerald Kamondo Njuki, who was trading as Geka General Supplies, had sued the State corporation claiming Sh205 million compensation but High Court commercial division judge Rachel Ng’etich slashed this amount on grounds that the proprietor did not incur any expenses in developing the plot.

“This court finds that lawyer Titus Koceyo has established there was breach of contract as Geka General Supplies never entered into a two acre plot leased to it three years ago by PCK,” Justice Ng’etich ruled.

The award to Mr Njuki will attract interest at court rates.

Posta was also directed to pay costs of the litigation.

Geka had applied for a plot from the State firm to develop it by building stalls and a garage at a monthly rent of Sh1,846,200 for a period of five years and six months.

The premises were never availed to it as per the lease agreement and after several demands from Mr Njuki, Posta then charged him with the responsibility of removing the existing tenants.

The judge said Geka was expecting a monthly income of Sh3,360,000 from renting out the stalls and leasing the garage to car mechanics.