MOMBASA, Kenya — Distributors supplying Coast Coca-Cola Bottlers products across Kenya’s Coast region have suspended operations, accusing the company’s management of unfair business practices that they claim have pushed many businesses into financial distress and disrupted beverage supplies.
The distributors, who serve markets stretching from Ukunda to Mombasa, Kilifi, Malindi, Lamu, Tana River and Lungalunga, announced the suspension after what they described as failed attempts to resolve their grievances through discussions with the company’s management.
Speaking during a press briefing in Mombasa, the distributors said they had exhausted internal dispute resolution channels before deciding to halt deliveries, apologising to retailers and consumers for the disruption.
“We sincerely apologise to our customers for the inconvenience. This was not a decision we took lightly. We have repeatedly raised our concerns with management, but they remain unresolved,” a spokesperson for the distributors said.
The distributors outlined 17 grievances, alleging that changes in the company’s business model have significantly weakened their operations.
Among the issues raised are restrictive distribution contracts, financing arrangements they say have eroded profit margins through additional bank charges, high sales targets, failure to honour agreed incentives, and mandatory investment in returnable bottles and crates without adequate returns.
They also accused the company of selling products directly within territories traditionally served by independent distributors, arguing that the practice undermines long-standing distribution agreements while exposing them to unfair competition.
Other concerns include alleged shortages of products, delivery of beverages with limited shelf life, failure to compensate distributors for damaged products, under-crediting of returned bottles and crates, rising transport costs and invoicing practices that they claim delay deliveries and distort monthly sales performance.
Mohamed Alwi, a distributor based in Kilifi, said the relationship between distributors and the company had deteriorated under the current management.
“We have worked with different managers over the years, but this is the first time we have experienced these kinds of challenges. We are receiving products with short shelf lives, products we did not order, and our losses continue to increase,” he said.
Joseph Ron, a former distributor in Mtwapa, claimed he lost his distribution territory after receiving only seven days’ notice, a move he said resulted in about 30 employees losing their jobs.
Another distributor, Yasmin Karim in Mariakani, alleged that uncertainty surrounding contract renewals has left businesses that invested heavily in trucks, warehouses and staff facing an uncertain future.
According to the distributors, the dispute has directly affected about 300 workers, with operations remaining suspended as they seek intervention from the company and relevant authorities.
Despite the standoff, the distributors said they remain committed to selling Coca-Cola products and hope for an amicable resolution.
“Our issue is not with the Coca-Cola brand. Our concern is with the current management and the way distributors are being treated. We want a solution that allows us to continue doing business sustainably,” a representative said.
The distributors said they are considering legal action and plan to petition Coca-Cola’s regional leadership and relevant government agencies to intervene in the dispute.
Coast Coca-Cola Bottlers had not publicly responded to the distributors’ claims by the time of publication.
