BY SAM ALFAN.
An exporter of coffee and tea has sued Co-operative Bank of Kenya seeking payment of more than half-a billion shillings made in commitment on behalf of a Dubai-based firm for the supply of coffee.
Step Solutions limited said in the petition that the lender offered several letters of credit in favour of Goldman CIS Italiana SPA Ltd.
Documents filed in court showed that the lender the first letter of credit was issued on July 6, 2023 for USD 480,000.
The exporter said the letter of credit provided that it would supply Brightsky with 60,000 kilograms of Uganda Arabica coffee AA grade, which originated from Mt Elgon in Uganda, to be shipped to Dubai.
The company further said a second letter of credit was issued on July 11, 2023 for USD450,000.
“In keeping with the terms of the respective letters of credit, the plaintiff proceeded to procure the consignments of the Robusta and Arabica coffees from Uganda and shipped them from Kampala to Mombasa, whereupon on or about the 30the pf August 2023, the plaintiff consigned said coffee from the Port of Mombasa to be discharged at the Port of Jebel Ali,” the exporter said.
The supply further said that it informed the lender that the due date on the first letter of credit would be 30 days from the date of bill of lading, which was to mature on or about September 29, 2023.
And despite accepting receipt of the consignment, the exporter said it has demanded payments without success.
“The defendant is truly indebted to the plaintiff for the said sum of USD 930,000,” the company said.
The exporter said it notified Goldman and Brightsky in a letter on September 1, 2023 that the conditions of the letters of credit had been fulfilled and scanned copies of the required documents under both letters of credit.
Further, Step Solutions Ltd said it delivered all the original documents listed in the first and second letters of credit for the respective consignment to the lender for their onward transmission to Goldman in accordance with the letters of credit.
The company further seeks special damages of more than USD 150,000 and interest which continue to accrue.
“By reason of the foregoing, in addition to the Letters of Credit sums due USD 930,000, the firm has suffered further loss by way of cost of finance based on the above specified loan agreements,” the exporter said.
