Nokia Ltd Sued By Kenyan Firm for Breach of Contract

Technoservice Ltd, a Kenyan firm, has taken Nokia Ltd to court for breaching a business contract in 2006. The firm has accused Nokia of selling its business to Microsoft Corporation in 2014 while still in partnership with them. The sale also resulted in the transfer of several Nokia Centres to Microsoft.

Technoservice is now seeking $1,380,000 (about Sh149 million) plus damages and loss of earnings for the business it had created for the nine years they were partners with Nokia Ltd.

According to Technoservice, Nokia ltd breached the deal by selling its business to Microsoft Corporation in 2014. The company is seeking to have the courts issue a declaration of joint investment to prove the existence of their partnership and that Nokia breached it deliberately.

Read: Nokia To Fast Track LTE Coverage In Nigeria

Technoservice has named 4 defendants in the case: Nokia Corporation, Risto Siilasmaa, the chairman of Nokia; Stephen Elop, Nokia Chief Operating Officer between 2010 to 2014 and Nokia International OY, a company in Finland.

Technoservice revealed that it was coerced into investing in the business through a deal that saw them establish Nokia care centres in the country. Despite co-establishing the centres, Nokia later transferred the centres to Microsoft Corporation without Technoservice’s consent, they said.

The suit papers show that the partnership deal was signed between Technoservice and  Nokia employees Piotr Labuszewski and Nicholas Maina, leading to a contractual relationship. The deal was orchestrated by Nokia intern

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Written by Vanessa Murrey

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