Kenya Tea Packers Ltd (KETEPA) risk losing Sh73 million over a 21-year-old advert. The producers of several tea brands including black tea, green tea, loose tea and ice tea might pay a former competitor, Raufco, for an advert that the latter alleges was defamatory.
In a case that has been in Mombasa courts since 1998, the complainant has lowered its proposed compensation from Sh100 million to Sh73 million.
Through lawyer Onyango Wameyo, Raufco, claims that it incurred losses due to the advert that claimed the complainant used dubious means to produce cheap tea.
“These fake tea packers do not collect government tax, VAT (Value Added Tax) hence the reason their tea appears to be cheap by say 15 or 17 per cent than Ketepa tea. If these persons were paying government tax, their tea for sure would be even more expensive than Ketepa tea. Consumers are asked to beware of fake tea packers,” the alleged advert reads in part as quoted by Business Daily.
KETEPA has stated that the move was in the best interest of the public.
“The defendant denies that it published the alleged defamatory words twice or that the same were written or published maliciously as alleged by the complainant and put it to strict proof.
The said publication was made as a matter of public interest for ordinary members of the public to distinguish that Furaha and Fahari tea are not related,” Ketepa said in court documents.
The matter is set for highlighting in October before High Court Judge Patrick Otieno after both parties file their submissions.