Diamond Shipping Services Ltd v Kencott CFs & 3 others (Civil Appeal 198 of 2023) [2026] KEHC 8527 (KLR) (9 June 2026) (Judgment)

Diamond Shipping Services Ltd v Kencott CFs & 3 others (Civil Appeal 198 of 2023) [2026] KEHC 8527 (KLR) (9 June 2026) (Judgment)

The appeal succeeded because the respondents’ counterclaims did not properly plead or support an award of 50% of Kshs. 13,583,667 against the appellant, and the evidence did not justify imposing demurrage and storage liability on the appellant. The appellant acted in good faith when fraud allegations emerged, the...

Source-derived case information.

Citation
[2026] KEHC 8527 (KLR)
Parties
Appellant: Diamond Shipping Services Limited; 1st Respondent: Kencott CFs; 2nd Respondent: Kenya Revenue Authority; 3rd Respondent: Mark Bowen; 4th Respondent: First Forty Importers and Exporters Company Limited
Court
High Court
Jurisdiction
Kenya
Case Number
Civil Appeal 198 of 2023
Procedural Posture
Civil Appeal / Judgment on First Appeal From the Chief Magistrate’s Court
Outcome
Appeal allowed
Judges
["PK Rotich"]
Legal Topics
Pleadings and Variance, Agent Liability, Demurrage and Storage Charges, Manifest Correction and Consignee Amendment, Bona Fide Purchaser and Title to Imported Goods, First Appellate Court Re Evaluation of Evidence
Source Language
en
Civil Procedure Commercial Law Shipping and Maritime Law Tort Law Pleadings and Variance Agent Liability Demurrage and Storage Charges Manifest Correction and Consignee Amendment +2 more

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Downloadable case file Legal principles 5 Authorities cited 10 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Diamond Shipping Services Limited

Appellant

Kencott CFs

1st Respondent

Kenya Revenue Authority

2nd Respondent

Mark Bowen

3rd Respondent

First Forty Importers and Exporters Company Limited

4th Respondent

Procedural Posture

Civil Appeal / Judgment on First Appeal From the Chief Magistrate’s Court

  1. 1 Whether the 1st and 3rd respondents’ counterclaims disclosed proper causes of action and pleaded reliefs against the appellant
  2. 2 Whether the appellant was liable for 50% of the accrued demurrage and storage charges of Kshs. 13,583,667
  3. 3 Whether the trial court’s apportionment of liability was supported by the pleadings and evidence

Ratio Decidendi

The appeal succeeded because the respondents’ counterclaims did not properly plead or support an award of 50% of Kshs. 13,583,667 against the appellant, and the evidence did not justify imposing demurrage and storage liability on the appellant. The appellant acted in good faith when fraud allegations emerged, the charges had begun accumulating before the disputed amendment issues and before the 3rd respondent’s purchase, and the 4th respondent’s own restraining orders materially contributed to the continued detention of the vehicles. The judgment against the appellant was therefore unsustainable and had to be set aside.

Court Disposition

Appeal allowed

Orders

  • The judgment of the Chief Magistrate’s Court in CMCC No. 713 of 2017 was set aside insofar as it related to the appellant.
  • The suit against the appellant was dismissed.