Inside Basmati trademark court battle

The dispute traces back to October 2009, when Krish Commodities Limited filed six trademark applications: Wali Basmati Rice, Rouz Basmati Rice, Pilau Basmati Rice, Nawab Basmati Rice, Rajah Basmati Rice and Al-Hannan Basmati Rice.

Each application incorporated the words ‘Basmati Rice’ but expressly disclaimed exclusivity over at least the elements ‘Basmati’ and ‘Rice.’

In 2010, the Agricultural and Processed Food Products Export Development Authority (APEDA) lodged notices of opposition before the Registrar of Trademarks.

It argued that ‘Basmati’ is a geographical indication (GI) referring to a distinctive long-grain aromatic rice cultivated in specific regions of India and Pakistan.

APEDA further contended that registration of these trademarks in Kenya would be misleading to consumers and unfairly exploit the reputation associated with Basmati rice. The Registrar of Trademarks dismissed the oppositions, finding that APEDA had failed to establish any proprietary rights in Kenya or to prove that the use of ‘Basmati’ in the composite trademarks would mislead consumers.

The High Court upheld the registrar’s decision in 2017 but went further in two important respects. First, it clarified that APEDA’s status as a statutory authority in India, charged with promoting agricultural exports, does not in itself confer proprietary or enforceable rights in Kenya.

Second, it observed that, at the time APEDA filed its opposition, ‘Basmati’ had not yet been registered as a geographical indication even in India, further weakening the agency’s claim to exclusive rights abroad. These additions provided greater legal and factual depth to the registrar’s findings and underscored the challenge of asserting cross-border GI rights without domestic recognition.

The Court of Appeal has now affirmed that outcome, maintaining that APEDA lacked a legal basis under Kenyan law to prevent registration.

The key issue for consideration was whether, under Kenyan law and Kenya’s international obligations, particularly the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), ‘Basmati’ qualifies as a geographical indication, and if so, whether its use in composite trade marks can be barred without prior domestic registration or recognition.

The Court of Appeal dismissed the appeal, affirming the decisions of both the Registrar of Trademarks and the High Court. While the court acknowledged that ‘Basmati’ may satisfy the TRIPS Agreement definition of a geographical indication, it held that determining whether ‘Basmati’ qualifies as a GI under Kenyan law was not a question to be resolved in the abstract nor for the first time on a second appeal.

The court emphasised that any recognition of ‘Basmati’ as a geographical indication in Kenya must follow the statutory pathway prescribed under Section 40A of the Trademarks Act, rather than being addressed indirectly in opposition proceedings to a trademark application.

In its analysis, the court accepted that Kenya is bound by its TRIPS obligations to provide protection for geographical indications and to refuse or invalidate misleading trademarks.

However, it reiterated that TRIPS is not self-executing in Kenya and must be implemented through national legislation. Section 40A (5) of the Trade Marks Act gives effect to these obligations by creating a framework through which geographical indications may be registered as collective or certification marks, enabling questions of scope, control, and use to be properly assessed.

Because ‘Basmati’ had not been registered or formally recognised as a GI in Kenya, APEDA lacked any legal basis to oppose Krish Commodities’ trademark applications.

The court observed that the respondent had disclaimed exclusive rights to the term ‘Basmati’, found no evidence of confusion or deception, and noted that the term had become descriptive in Kenya, commonly referring to long-grain aromatic rice, including local varieties. The court dismissed the appeal in its entirety with costs.

The judgment reinforces Kenya’s territorial approach to intellectual property rights, making it clear that foreign GIs, even those that are internationally recognised, require domestic registration or formal recognition to attract protection.

The decision cements consistent deference to Kenya’s statutory framework, which currently channels GI protection through the Trade Marks Act rather than international instruments.

The case illustrates that Kenyan courts are unlikely to interpret TRIPS directly or expansively, preferring to rely strictly on the domestic legal architecture. For brand owners and foreign producers, the judgment underscores the importance of proactive local registration strategies not only for GIs but for any form of intellectual property rights whose protection originates outside Kenya.

Notably, the Court of Appeal’s reference to the ‘Geographical Indications Act (2019)’ is a factual inaccuracy, as no such Act has been enacted. The Geographical Indications Bill, first introduced in 2019, remains pending. The only operative framework continues to be section 40A (5) of the Trade Marks Act.

GIs are a strategic tool for Kenya’s agricultural sector, offering a pathway to enhance rural development, protect local heritage, and boost export competitiveness.

GIs also promote sustainable farming practices and empower communities by linking product quality to origin, making them a powerful instrument for inclusive economic growth and international market positioning.

For policymakers, it serves as a reminder of the urgent need to enact and operationalise Kenya’s long-delayed GI legislation to align the country’s regime with international best practice and to provide greater certainty for traders and producers.

Until Kenya enacts and implements its Geographical Indications law, GI protection will remain dependent on registration under the Trade Marks Act, and the courts will not infer protection from international instruments such as TRIPS.

Will APEADA take the fight to the Supreme Court? That remains to be seen especially after the Court of Appeal stumbled over a law that is not even in force yet.

Are debt, arbitration clauses a shield against insolvency proceedings?

Can a contractor pursue insolvency proceedings where the debt is disputed and an arbitration clause exists? This was the central issue before the Court of Appeal in Kwale International Sugar Company Limited versus Epco Builders Limited and two others [2025] KECA 227 (KLR), a case with implications for contractors, employers and legal practitioners navigating construction disputes.

In 2012, Kwale Sugar contracted Epco Builders (Epco) to build a factory under a Sh2.22 billion engineering, procurement and construction agreement.

A dispute arose over alleged non-payment of Sh712 million. Epco issued a statutory demand and later filed an insolvency petition seeking liquidation of Kwale Sugar. Kwale Sugar applied to set aside the demand and strike out the petition, arguing that the debt was genuinely disputed; the parties were bound by an arbitration clause; and the demand was defective under the insolvency regulations.

The High Court dismissed the application. On appeal, the Court of Appeal upheld the outcome but clarified important legal principles at the intersection of insolvency law and construction contracts.

Kwale Sugar had cited personal bankruptcy provisions instead of the corporate insolvency rules. The court found this error non-fatal, confirming that courts will prioritise substance over form in the absence of prejudice.

The Court of Appeal criticised the High Court’s remarks that the debt was undisputed, noting that such conclusions should be reserved for full hearings or arbitration. Courts should be cautious not to prejudge contested issues during interlocutory proceedings.

While acknowledging the existence of the arbitration clause, the court held that it does not oust the jurisdiction of insolvency courts.

Insolvency proceedings are collective in nature and serve a public interest function that may override private dispute resolution arrangements.

The court held that defects in the statutory demand, such as form irregularities, will not invalidate it unless actual prejudice is demonstrated. In this case, no prejudice was shown.

For contractors, certificates are persuasive but not talismanic. Their legal effect depends on the contract’s terms, and they will not cure fundamental issues of non-compliance, missing support or unresolved set-offs. Insolvency should be reserved for clear cases of non-payment, not deployed as leverage in a live valuation dispute.

The message to debtors is equally clear: a technical objection is strongest when coupled with a coherent evidentiary record showing why the sum claimed is not presently due under the contract.

Debt disputes must be resolved on merits, not prematurely at interlocutory stages. Arbitration does not override insolvency jurisdiction, especially where the debt is not genuinely contested.

Genuine disputes on substantial grounds must be resolved through appropriate forums like arbitration or full trial. Form defects in statutory demands will not invalidate proceedings unless actual harm is proven.

The consequences are practical. For employers, an arbitration clause is valuable only if it is invoked promptly and carried on the back of documentary substance, such as engineer or architect determinations, measurement records, variation orders, defect notices, correspondence evidencing reconciliation and a credible set-off schedule.

Paying the undisputed slice protects credibility and undercuts any narrative of inability to pay, while reserving genuine disputes for the agreed dispute-resolution forum. For more on what constitutes a genuine dispute, see our previous alert here.

For project owners, contractors and funders, the case reinforces the value of disciplined paperwork: interim payment certificates (IPC) packs tied to contract mechanisms, site diaries, measurement sheets, variation order (VO) approvals, notices and reconciliations. In a payment standoff, those records, rather than the insolvency court, will decide who ultimately pays whom, and how much.

The Kwale Sugar decision reinforces the principle that insolvency proceedings must be reserved for clear cases of inability to pay and cannot be used as leverage in unsettled construction disputes.

It also clarifies the boundaries between private dispute resolution mechanisms and public insolvency processes. Where debts are genuinely disputed on substantial grounds, the appropriate forum remains the agreed dispute resolution mechanisms, not the insolvency court.

Kenya’s chance to redefine trade ties with US post-Agoa

Kenya is at a pivotal juncture in shaping its future economic relationship with the United States. With the African Growth and Opportunity Act (Agoa) extended by only one year and ongoing plans for a bilateral trade agreement, the country has a unique opportunity to reposition itself as a strategic and indispensable partner to the US.

This moment requires Kenya to adopt a negotiation approach that aligns with the current American trade philosophy, particularly that of Donald Trump’s transactional and ‘America First’ outlook, which emphasises clear, measurable benefits for the US economy.

The orchid collectors: Former executives turn gardening into new hobby

This past weekend, orchid collectors and enthusiasts gathered for the much-anticipated Annual Orchid Show at the Sarit Centre.

This year’s blooms were nothing short of lush, vibrant, and bursting with colour. Shades of purple, yellow, white, and green transformed the exhibition hall into a miniature jungle.

Deal on stolen data of 11.5m Safaricom subscribers flops

Safaricom has failed to settle a suit in which it sought to block the sale or transfer of stolen personal data belonging to 11.5 million subscribers.

Two former managers at Safaricom allegedly accessed and shared data, including customer names, phone numbers, birth dates, subscribers’ location, gambling records, passport and ID numbers with a businessman, Benedict Kabugi, for sale to a top sports betting firm.

10 NSE-listed firms fail to issue investor calendars

Ten Nairobi Securities Exchange (NSE) listed firms have failed to submit their corporate event calendars, contravening the rules that were introduced to enhance transparency for investors.

The NSE latest corporate calendar shows the list of firms that have failed to make the disclosures are East African Portland Cement, Eveready East Africa, NewGold Issuer (RF) Limited, HomeBoyz Entertainment and Housing Finance Group.

Bank allowed to pursue debtor for deficit from loan collateral auction

The High Court has dismissed a borrower’s appeal to block Mayfair Bank from demanding payment of a Sh9.8 million disputed loan that was allegedly settled through the sale of securities valued at Sh27 million, affirming the lender’s right to recover outstanding debts even after auctioning collateral.

In a judgment delivered by Justice Linus Kassan, the court ruled that N.T. Express Laundromat Ltd and its director, Mourine Wanjiku, failed to prove allegations of misrepresentation or procedural irregularities in a 2020 consent agreement that bound them to repay the debt.

Death of prominent leaders that marked end of eras in Kenya

Kenya has previously witnessed the end of several political eras.

The notable ones being the death of the founding President, Jomo Kenyatta, who died in 1978 aged 81.

This was followed by the death of the founding Vice President Jaramogi Oginga Odinga in 1994.

On February 4, 2020, just before Covid-19 was declared a global pandemic, Kenya’s second independence president, Daniel Toroitich arap Moi, died at 95 years, his death signalling the end of an era for a man nicknamed the Professor of Kenyan politics.

However, the death of Raila Odinga, the son of Jaramogi, on October 15, 2025, aged 80, shook the political landscape that was accustomed to a man who went with so many political names-Enigma, Agwambo, Arap Mibei, Njamba, Tinga, Nyundo, Jakom and Baba.

Raila, Kenya’s undisputed hero of the second liberation struggle, was a man that Kenya never had as president, notwithstanding the five attempts-1997, 2007, 2013, 2017 and 2022. His defeat on some occasions was blamed on electoral manipulation despite his unmatched popularity across the country.

However, in death, Odinga got military honours complete with a 17-gun salute to honour the departed hero, unlike his late father, Jaramogi, who was not even accorded a State funeral despite having served as the country’s first Vice President.

And President William Ruto on Sunday acknowledged that there was resistance within government circles to accord Odinga a State funeral with military honours since he never became president.

But a towering figure in Kenya’s political scene, Odinga, who, although never rising to power, struck deals with then presidents Moi, Kibaki, Uhuru Kenyatta and Dr Ruto, which saw him get into the inner sanctums of power, the former prime minister’s influence in shaping the Kenyan state saw him accorded the honours.

From a political detainee, Odinga went on to build a fanatical movement around him, forging what is arguably the longest popular party, ODM, which coincidentally marks its 20th anniversary next month, a party around which many have built their political careers.

The Lang’ata MP went on to serve as prime minister in a grand coalition government with President Kibaki between 2008 and 2013-the highest post in government that he ever held until his death.

The son of Jaramogi rose to the public limelight and the political scene as a political detainee after he was linked to the failed 1982 coup by the disgruntled Kenya Air Force officers, becoming the country’s most consequential political figure after the late Moi.

The coup attempt was designed to depose then-President Moi.

Odinga, being at the centre of power even though he never became president, was a highly influential figure in Kenyan politics, known for his decades-long fight for democracy, human rights, and constitutional reform that led him to rub the government figures the wrong way.

An opposition leader in Kenyan politics, Odinga played a significant role in shaping the country’s politics, specifically pushing for the rights of the common people as well as the political reforms.

As the country paid its last respects to Odinga before his interment on Sunday, President Ruto, former President Kenyatta, former Nigerian President Olusegun Obasanjo and former Vice President Kalonzo Musyoka eulogised Odinga as a great leader.

Describing Odinga as a mentor, President Ruto said Kenya had lost a great hero, ‘a man made through the fabric of struggle’.

‘Raila is fondly referred to as the people’s president. We honour him with a lot of respect because of his contribution to the nation. I can confidently say that Raila was not just an engineer but a political engineer,’ said President Ruto.

‘Yours truly, William Ruto was one of his students in political engineering. He mentored me.’

Read: Raila’s dream of factory wealth

It is not disputed that Odinga was a highly influential figure in Kenyan politics, known for his decades-long fight for democracy, human rights and constitutional reforms that ultimately yielded a new constitution that was promulgated on August 27, 2010.

Born on January 7, 1945, Raila spent years in detention and exile for his activism against former President Moi’s regime.

Former National Assembly Speaker Justin Muturi writes that ‘while we may have differed with Raila politically at various points, I have always respected his tenacity and deep love for the country.

‘For decades, Raila Odinga stood at the heart of Kenya’s struggle for freedom, reform, and inclusion. His journey, marked by sacrifice, resilience, and an unrelenting belief in the promise of this nation, inspired millions across generations,’ said Mr Muturi.

Acknowledging that few men ‘have so profoundly shaped Kenya’s democratic space or borne its burdens with such resolve, Raila’s passing leaves a void not just in politics, but in the conscience of our nation’.

‘Raila’s legacy will endure in our institutions, in our freedoms, and in the hearts of all who believe in the dream of a just and united Kenya,’ notes Mr Muturi.

Retired President Obasanjo noted that ‘one thing you could not take away from Raila was his passionate love for his country and Africa.’

‘It is what made him grow from strength to strength in his political career,’ said former President Obasanjo.

The retired President Obasanjo was among those who attended the meeting in Mombasa, Kenya, that brought President Ruto and Odinga together after the closely contested August 2022 presidential election, which led to the formation of the broad-based government in 2024.

President Ruto and Odinga were close rivals in the 2022 General Election.

‘Tolerance is a lesson of love. Raila tolerated accommodation. It’s a lesson we must learn from him. I have lost a brother, a friend and a confidant,’ said Mr Obasanjo.

Odinga was a towering figure, a veteran politician, and a champion of democracy who left an indelible mark on Kenya’s history.

As a key figure in the opposition movement, Odinga played a significant role in shaping Kenya’s democratic journey, advocating for human rights and pushing for electoral reforms. Retired President Kenyatta, referring to Odinga as a close friend, said his loss presents the country with a huge challenge.

‘We will miss Raila as a leader of this nation. His thoughtfulness, his freedom and those good virtues will always be remembered,’ said immediate former President Uhuru, with Mr Kalonzo remembering the late Odinga as the father of democracy.

‘Raila was the epitome of the struggle for justice and the fight against corruption,’ said Mr Musyoka, adding that ‘despite the pain of a stolen election, he was very accommodating’.

‘Raila was a patriot who fought for justice, equity and unity even in the face of adversity,’ said former President Uhuru, without forgetting their fierce political battles and later ended in friendship- the handshake in 2018 on the stairs of Harambee House, the official office of the President.

However, as the country and Africa bade Odinga goodbye, in his 43 years after the failed coup, he never revealed his role in the failed 1982 coup, even in his biography: Raila Odinga, an Enigma in Kenya Politics by Nigerian author and lawyer Dr Babafemi Badejo, launched in 2006.

The matter, which landed Odinga in detention thrice, has been mentioned as a passing cloud.

He had promised to give more details of the failed coup in a book he promised to churn out, but never did so until his death.

However, in his autobiography, The Flame of Freedom, released in 2013, he revealed that his role was merely ‘peripheral.’

Interestingly, despite the detentions, Odinga was never charged with the failed coup attempt.

The question that remains unanswered and which follows Raila to the grave was whether his failure to be prosecuted was a political deal with the late Moi.

Unlike his former colleague in detention- former Subukia MP Koigi Wamwere, Raila also never produced his detention diary.

In the book; Raila Odinga, an enigma in Kenya Politics, Raila reveals that the coup plotters sought and got the blessings of Jaramogi and that he set up a communication centre at an apartment on Ngong road from where he and the plotters monitored events.

When the Raila Biography was released figures like former Internal Cabinet Minister Chris Murungaru were quick to call for Raila to be tried for treason and that if convicted, hanged as provided for in the law.

‘Raila is a dangerous person and he has declared himself to be so,’ Dr Murangaru said immediately the book was launched as he asked legal experts to scrutinize the book for action telling Raila not to disown the contents ‘since he must have sanctioned every word and was present at the launch.’

Other than Dr Murungaru, then retired President the late Moi told his Kalenjin community to ‘be wary’ of Mr Raila’s antics because his biography had exposed his true character.

Speaking in the Kalenjin dialect, Moi said; ‘you can now read the kind of person the man of the lake is.’

But Raila immediately hit back at those calling for his arrest saying that what he expected was an intellectual debate by people who had read the book and not wild allegations that could not be substantiated.

‘What I want is intellectual discourse from people who have read this book and not unfounded allegations. I will only respond to reasoned critique over the issues in the book,’ Raila said then.

Then Nyakach MP Peter Odoyo, was among the MPs who defended Raila saying the book was not an autobiography and that ‘the views expressed in it represented the assessment of the author and did not come directly from Raila.’

In page 94 of Raila’s biography, Raila comes out vaguely as neither denying nor confirming having actively participated in the 1982 failed coup.

However, in his autobiography; The Flame of Freedom, released in 2013, Raila says that he played only a ‘peripheral role’ in the attempted coup.

‘The publication of a biography of me in 2006, where the writer intimated a peripheral role for me in the coup attempt, caused a vindictive outcry- indicating that freedom of speech is, at the time I tell this, my story, as shackled as ever in our country,’ he said in 2013.

As the country bids Raila, the enigma of Kenya politics goodbye, his friend in the liberation struggle Senior Counsel Paul Muite said that ‘the fallen hero’ will always be remembered for the democratic space that the country continues to enjoy.

‘Raila will always be remembered for his immense contribution for justice in our motherland- detentions, torture and exile,’ said SC Muite adding; ‘we have now handed the baton for the unfinished business to the current generation.’

Mr Muite was so close to the Odingas. He Muite and the Odingas have had a long history of collaboration in politics and beyond.

He Muite served with Raila and his father in the National Assembly on the opposition benches.

He was also Jaramogi’s close ally and was his Vice Chairman in the Ford-Kenya party and during the 2022 Presidential election petition at the Supreme Court, he represented then Raila’s Azimio coalition to challenge the declaration of President William Ruto as the winner of the presidential election.

Former Imenti Central MP Gitobu Imanyara who served with Raila and Jaramogi in the National Assembly, notes that ‘some lives speak for themselves.’

‘They do not want to be celebrated. They are lived out loud, with conviction and cost, shaped by purpose and defined by endurance. The life of Raila Odinga is one of these,’ Mr Imanyara, Raila’s comrade in the struggle movement, said.

‘For those of us who have walked beside him, not in ceremony but in resistance, his journey is one we carry not only in memory but in bone,’ added the former Imenti Central MP.

Prof Anyang’ Nyong’o, the Kisumu County governor, Raila’s colleague in the second liberation struggle said that without Raila, the country may not have realized the 2010 constitution.

‘The Nation was ready for change and Baba was for that change. He was instrumental in pushing for devolution of power and resources,’ said Governor Prof Nyong’o.

Siaya County Governor James Orengo, who was also in the trenches with Raila in the fight for second liberation did not fail to recognise the befitting send-off Raila was accorded.

‘This is the first State funeral with military honours in the Nyanza region. We lost prominent leaders from this region- Jaramogi, Tom Mboya, Dr Robert Ouko but their sendoff never came close to this. But this is the first,’ said Governor Orengo.

‘What did Raila really stand for? Many came and fell by the wayside but Raila stood. He was a fighter for democracy. There are those who lead political parties and have abused Raila without knowing that without Raila, they would not be leading those parties,’ added Governor Orengo.

According to Governor Orengo, Raila was courageous.

‘In 2017 when his votes were stolen, he decided that he will be the people’s president. Before you open your mouth to speak against Raila, remember what he stood for and what he fought for. He was a peacemaker- as you can see that even in his death, he has brought President Ruto and Uhuru together,’ said Governor Orengo.

Kenya Re keeps fair rating amid corporate governance worries

Global rating agency AM Best has affirmed the credit ratings of Kenya Reinsurance Corporation (Kenya Re), keeping the outlook stable even as it raised concerns over the reinsurer’s governance and risk management practices.

The US-headquartered agency maintained the reinsurer’s financial strength rating (FSR) of B (fair) and the long-term issuer credit rating of ‘bb+’ (fair). It also kept a stable outlook on both ratings.

AM Best says it assigns B (fair) rating to insurance companies that have ‘a fair ability’ to meet their ongoing insurance obligations. The agency rates financial strength of such insurers as vulnerable to adverse changes in underwriting and economic conditions.

Kenya Re’s FSR of B (fair) sits at the midpoint of AM Best’s 13-tier rating scale, which ranges from superior (A++) at the top to poor (D) at the bottom.

‘The ratings reflect Kenya Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and weak enterprise risk management,’ said AM BEST in a statement.

AM Best said Kenya Re’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation which is at the’ strongest level.’ The reinsurer’s capital position provides a sufficient cushion against underwriting and investment risks.

However, AM Best cautioned that the company faces several risks and weaknesses including governance challenges, citing the recent suspension of managing director Hillary Wachinga in unclear circumstances.

Read: Why Treasury wants to give Kenya Re bigger slice of the pie

‘Kenya Re’s risk management framework is evolving and its risk management capabilities are weak when compared with its risk profile. AM Best notes that the company’s managing director was placed under suspension in September 2025, due to an ongoing internal matter. AM Best will continue to monitor the outcome of this matter,’ said the rating agency.

Despite these concerns, AM Best said the stable outlook reflects confidence that Kenya Re’s strong capitalisation and improving underwriting performance will sustain its financial position in the near term.

Kenya Re’s operating performance was rated as ‘adequate,’ supported by improved underwriting results and healthy investment income.

AM Best said the company’s average return on equity has exceeded domestic inflation over the past five years, indicating steady profitability despite economic headwinds.

The reinsurer’s non-life insurance portfolio showed improvement, with a combined ratio of 78.1 percent in 2024, compared to 97.7 percent in 2023, based on International Financial Reporting Standard 17.

The combined ratio measures the money flowing out of an insurance company in the form of dividends, expenses and losses. AM Best noted that since initiating corrective actions in 2020, Kenya Re’s non-life portfolio has reported technical profits in most years.

AM Best noted that Kenya Re continues to benefit from its privileged market position, backed by compulsory reinsurance cessions from local insurers, as well as its geographic diversification across Africa, Asia and the Middle East.

Insurers in Kenya are currently obligated to place a fifth of their reinsurance business with Kenya Re but this is set to rise to a quarter if the recently published proposals under the draft Insurance (Amendment) Regulations, 2025 are adopted.