KenolKobil said in May it expected the sale of a majority stake to Puma energy by key shareholders to be completed within a few months. Photo/FILE
Employees of Kenyan fuel marketer KenolKobil have filed a lawsuit to prevent a takeover of the company by Swiss-based Puma Energy, a subsidiary of Trafigura Beheer, citing expected changes that could affect their jobs.
The matter will be heard at the Industrial Court this Friday, a lawyer for the employees told Reuters on Monday.
Vincent Njoroge, Philip Otenyo and Ronald Lugaba, who are suing on behalf of the company's employees as a whole, claim that as a result of the expected restructuring, the workers risk job losses, court papers seen by Reuters showed.
The workers argue that since the directors of KenolKobil will cease to have any power to influence the policies of the new company and enforcement of employees rights, the employees' future will be dependent on the whims of the third party.
The company said only its lawyers could comment on the court case. KenolKobil said last week it would issue a statement this week related to the takeover bid.
KenolKobil said in May it expected the sale of a majority stake to Puma energy by key shareholders to be completed within a few months.
The oil industry in east Africa has attracted foreign investment in recent years after discoveries in Tanzania, Uganda and Kenya. Puma Energy's acquisition of KenolKobil would help it strengthen its trading activities, through its three trading desks in Nairobi, Dar es Salaam and Harare.
Reuters
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