Moroccan fertiliser maker OCP Kenya has threatened to initiate winding up proceedings against Kenyan agricultural products firm Oldonyo Nairasha Estates Narok Ltd, citing breach of contract and failure to honour payment of outstanding debt of Sh58 million.
“Take notice that within 21 days after service of this notice to the company, excluding the day of such service, the company must pay OCP Kenya Limited, or to M. M. Gitonga Advocates LLP its agent duly authorised the sum of Sh58.2 million,” said OCP Kenya in a notice posted on dailies through law firm M. M. Gitonga Advocates.
The firm said the alleged debt is the amount due from contracts for the supply of fertiliser to Oldonyo Nairasha, which has been outstanding since August 2018.
OCP said the company must pay up the monies or satisfy that it has a counter claim.
“Failure to pay the aforestated amount shall result in OCP Kenya Limited filing for a liquidation order against the company,” warned the lawyers for OCP Kenya.
OCP was recently rocked by trouble after the State accused it of importing substandard fertiliser as authorities turned on the heat on dealers in harmful products and tax evaders.
OCP has since denied that its products were substandard and threatened legal action against persons it insists are pushing a smear campaign against it.
In May 2019 the Director of Public Prosecutions (DPP) Noordin Haji terminated the case against the Moroccan fertiliser firm and four of its officials in the alleged substandard consignment scam.
He further ordered the investigating officer to unconditionally release the impounded consignment of fertiliser held at Bollore Warehouse to OCP.
According to Senior Assistant DPP Alexander Muteti, the decision was arrived at after parties entered a plea bargaining agreement.
Fertiliser imports from Morocco declined by 59 percent in 2018 as concerns over substandard shipment of the input hit supplies, official data showed.
Kenya paid Sh411 million for Morocco fertiliser imports in 2018, a significant decrease from Sh1 billion that Rabat received from the country in 2017, figures from the Kenya National Bureau of Statistics (KNBS) indicate.