Glencore contests Court of Appeal ruling in favour of Kenya Pipeline Corporation

NAIROBI, KENYA: Glencore has moved to the Supreme Court to contest the ruling made by Court of Appeal on March 25th, 2015 in favour of Kenya Pipeline Corporation.  

On December 12th, 2012, Justice Ogola had ruled in favour of Glencore at the High Court.

In their Supreme Court submissions, Glencore argues that the Court of appeal applied evidence selectively and therefore was denied a chance to plead its case. 

Glencore adds that the matter is of public interest as it questions the Court of appeal`s conduct in determining cases and will require interpretation of laws on the right to fair hearing. Glencore claims KPC was liable for its loss of oil valued at Sh3.6b following KPC`s releasing fuel to marketers without informing them.  

The Court of Appeal ruled that the terms of storage did not apply to Glencore as it was operating in Kenya illegally hence could not fault KPC. But Glencore argues that KPC made reference to the storage claims in letters they exchanged hence it was protected by the conditions of the transport and storage agreement the corporation sign with importers.

This high profile case that potentially carries great ramifications on the course and conduct of international trade not only between Kenyan oil marketing companies and their financiers (local or international), but on the way Kenya will trade on the world markets from here on i.e. if Financiers feel that they are not protected by the laws in Kenya-then from here on Kenya will have to purchase all its imports on a cash basis.  This will in turn put great pressure on the Kenyan shilling and the Kenyan economy as a whole.