https://new.kenyalaw.org/akn/ke/judgment/kehc/2026/12506

https://new.kenyalaw.org/akn/ke/judgment/kehc/2026/12506

The appeal succeeded because the 1st and 3rd respondents’ counterclaims did not properly plead or pray for liability against the appellant in the manner awarded, and the trial court’s 50% apportionment of demurrage and storage charges against the appellant was unsupported by the pleadings and evidence. The appellate...

Source-derived case information.

Citation
[2026] KEHC 12506 (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 E198 of 2023
Procedural Posture
Civil Appeal From a Chief Magistrate’s Court Judgment on Liability for Demurrage and Storage Charges and Ownership of Imported Motor Vehicles / Appeal Determined; Lower Court Judgment Set Aside in Part and Substituted
Outcome
Appeal allowed; lower court judgment set aside as against the appellant; suit dismissed against the appellant; 4th respondent held liable for the demurrage and storage charges; costs awarded to the appellant and the respondents against the 4th respondent.
Judges
["PK Rotich"]
Legal Topics
Pleadings and Variance Between Pleadings and Prayers, First Appeal Re Evaluation of Evidence, Agency Liability, Demurrage and Storage Charges, Title to Imported Motor Vehicles, Fraud and Manifest Amendment, Counterclaims, Bona Fide Purchaser, Costs and Apportionment of Liability
Source Language
en
Civil Procedure Commercial Law Shipping and Admiralty Tort Sale of Goods Pleadings and Variance Between Pleadings and Prayers First Appeal Re Evaluation of Evidence Agency Liability +6 more

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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 From a Chief Magistrate’s Court Judgment on Liability for Demurrage and Storage Charges and Ownership of Imported Motor Vehicles / Appeal Determined; Lower Court Judgment Set Aside in Part and Substituted

  1. 1 Whether the 1st and 3rd respondents’ counterclaims disclosed causes of action and sought substantive reliefs against the appellant
  2. 2 Whether the appellant was liable for 50% of Kshs. 13,583,667 in demurrage and storage charges
  3. 3 Whether the trial court erred in apportioning liability and awarding costs against the appellant

Ratio Decidendi

The appeal succeeded because the 1st and 3rd respondents’ counterclaims did not properly plead or pray for liability against the appellant in the manner awarded, and the trial court’s 50% apportionment of demurrage and storage charges against the appellant was unsupported by the pleadings and evidence. The appellate court further held that the appellant acted in good faith in the face of fraud allegations and that there was no basis for imposing liability on it for charges that had begun accruing before the disputed manifest changes and were also prolonged by the 4th respondent’s own restraining orders.

Court Disposition

Appeal allowed; lower court judgment set aside as against the appellant; suit dismissed against the appellant; 4th respondent held liable for the demurrage and storage charges; costs awarded to the appellant and the respondents against the 4th respondent.

Orders

  • Judgment of the Chief Magistrate’s Court in Mombasa CMCC No. 713 of 2017 dated 7 July 2023 set aside and substituted with dismissal of the suit against the appellant.
  • 4th respondent held fully liable for Kshs. 13,583,667 being demurrage and storage charges owing as at 2 March 2021 until collection of the vehicles.