KPC backs Galana Energies in Sh17bn fuel dispute with Ann Njeri
An oil tanker. Kenya Pipeline Company has told court that the fuel businesswoman Ann Njeri (inset) claims to have imported was not a grade accepted in the country.
By Brian Ocharo
What you need to know:
- Court was informed that the grade of fuel which Anns Import and Export Enterprises Ltd (Kenya) claims to have imported was not a grade accepted in the country.
- Anns Import and Export Enterprises Ltd last year sued Galana Energies, Kenya Ports Authority, and KPC over the ownership of the cargo.
The Sh17 billion oil import saga has taken a new twist after the court was informed that the grade of fuel that Anns Import and Export Enterprises Ltd (Kenya) claims to have imported was not a grade accepted in the country.
In fresh documents filed before the Admiralty Court in Mombasa, the Kenya Pipeline Company Ltd (KPC) said the 100,000 metric tonnes of Grade EN590 diesel oil which the firm claims to have imported is not handled in Kenya.
"KPC further wishes to aver that the grade Diesel EN590 alleged to be the cargo in Motor Vessel "Hagui" by the Claimants is not a grade of fuel accepted in Kenya and that the only grades of fuel transported and stored by the corporation are MSP "Petrol", Automated Gas Oil "AGO", Kerosene and Jet A-," said KPC through its advocate Nelson Odongo.
The corporation said that it does not have any Transport and Storage Agreement with the Claimant and therefore the firm is a stranger to the government corporation and any alleged cargo that it lay claim to as KPC only deals with licensed Oil Marketing Companies.
Also Read: Too much ping-pong on fuel saga
"KPC further wishes to aver that the claimant does not have the requisite importation license to import petroleum products to Kenya and it, therefore, practically impossible for the claimant to claim ownership of the petroleum product onboard the Motor Vessel "Hagui," said KPC.
Businesswoman Ann Njeri Njoroge at the Mombasa Law Courts on November 14, 2023.
According to KPC, the Ministry of Energy and Petroleum nominated Galana Energies to deliver 85,700 MT of AGO KG22/2023 from ARAMCO TF on behalf of other Oil Marketing Companies upon the introduction of the Government -to- Government framework for importation of petroleum products for sale in Kenya.
The documents indicate that the Motor Vessel "Hagui" was called to berth in Mombasa on November 4, 2023 and commenced discharging of the AGO KG22/2023 at KPV facilities six hours later on the same day.
KPC said that considering that there are no strategic reserves in the country for petroleum products, the AGO KG22/2023 was immediately released to the respective Oil Marketing Companies in accordance with their entitlement for use by the market immediately after discharge.
"KPC further wishes to aver that pursuant to its license issued by the Energy and Petroleum Regulatory Authority and the transport and storage agreements between itself and Oil Marketing Companies including Galana Energies, who are licensed to carry out petroleum business, KPC is merely a transport and storage company and it did not and does not intend to lay claim on the cargo onboard Motor Vessel "Hagui" as is being alleged by the claimants," said Mr Odongo.
In addition, KPC has clarified that the 85,700 MT of AGO KG22/2023 onboard Motor Vessel "Hagui" has already been discharged to the respective Oil Marketing Companies in accordance with their entitlement and the respective Transport and Storage agreements.
"KPC is no longer in possession of the same. KPC did not and does not intend to make any payments for the cargo since the corporation is merely a transport and storage company and not an Oil Marketing Company," said Mr Odongo.
Anns Import and Export Enterprises Ltd last year sued Galana Energies, Kenya Ports Authority, and KPC over the ownership of the cargo.
Businesswoman Anne Njoroge arrives at the Mombasa Law Courts with her lawyer Cliff Ombeta on November 14, 2023.
Last year, Justice Kizito Magare declined an attempt to remove the case from his court after the claimant (Anns Import and Export Enterprises) questioned the court’s jurisdiction to handle the claim.
Justice Magare shot down the attempt asserting that his court still has jurisdiction to determine certain issues in the dispute.
According to the judge, his court still has powers to preside over the case even though the cargo was discharged and the ship left the jurisdictions, arguing that the dispute still has some admiralty issues in the suit.
Anns Import and Export Enterprise LTD claimed that the dispute became irrelevant once the cargo was unloaded from MT Haigui and the ship left the country's jurisdiction.
The company argued that the best course of action would be to bring the dispute before a commercial court for a fair hearing and resolution.
Through its advocate John Diro, the company told the court that the firm was left footless when the court lifted the orders arresting the vessel MT Haigui and another restraining Kenya Ports Authority (KPA) and Kenya Pipeline Corporation (KPC) from offloading the cargo.
Galana Energies Ltd has laid claim to the cargo, noting that Anns Import and Export Enterprises is not authorized to deal with importation and supply of petroleum products in the country.
According to the firm's sole director Ms Ann Njeri Njoroge, she had imported 100,000 metric tonnes of oil loaded on vessel Haigui before she was shortchanged when the cargo arrived in the country.
She claims that the vessel loaded with the products took around 15 days from Russia Mosco to Mombasa water through, Abzerbaijan Republic, Turkey, Jedda, port of Ceyha.
She has said that she has an account with LLC ALPHA-AAA YTBE)(AEHO MOSCO-RUSSIA, under her old company Anns Import and Exports.
As a supplier, she has argued that her engagement has always been direct from government to government and to authorized local distributors.
She has however said that it was her first time to deal with the Kenyan market directly through that huge consignment as she has been indirectly supplying the commodity to the country through distributors based in Dubai.
However, Galana Energies says through its executive officer Anthony Munyasya that product EN590 allegedly imported by the rival firm is not a product specified in the Kenya Bureau of Standards Import Specification for diesel for use in the country.
Galana has said that the claimant has failed to demonstrate the ownership of MT Haigui or that it is authorized to import refined petroleum products for sale in Kenya and the transit market.
