KPC allowed to contest award to KenolKobil
KPC was ordered to pay the oil dealer Sh4.6 billion over breach of agreement in fuel storage. Photo/FILE
The way has been cleared for the Kenya Pipeline Company (KPC) to contest a Sh4.6 billion award granted to oil dealer KenolKobil.
This follows the dismissal of two applications filed by the dealer in a bid to forestall the appeal.
In a ruling, Lady Justice Ruth Sitati, said the appeal by KPC was competent and should be listed for hearing.
In the appeal, the State corporation moved to court accusing the arbitrator, Ahmednasir Abdullahi, of bias by allegedly using “injudicious language”.
Further, KPC says in the appeal that the sole arbitrator failed to treat each party with equality.
According to KPC’s lawyer John Ohaga, the arbitrator undertook an extensive research into the law in support of Kenol/Kobil’s case.
The award, granted to the oil dealer in December 2009, is one of the biggest award handed in an arbitration.
KPC was ordered to pay the oil dealer Sh4.6 billion over breach of agreement in fuel storage.
But KPC has contested the ruling saying that it was an error by finding that the transport and storage agreement between KPC and the oil dealer dated May 10, 1996 provided for the allocation of ullage.
Kenol/Kobil cannot enforce the award after KPC obtained a stay.
