Kobil petrol station on Limuru Road, Nairobi. The firm suffered a setback yesterday in a legal tussle over its planned sale to Puma Energy. File
What you need to know:
The employees blocked the deal after persuading the court the Puma would restructure the firm and send them packing.
The injunction comes in the wake of a similar order by the Industrial court restraining KenolKobil from closing the Puma transaction
Puma’s intended takeover of the oil marketer is facing more legal challenges after Kenya Pipeline Company joined the fray last month when it obtained court orders stopping the deal.
KenolKobil has lost yet another legal battle after a Nairobi judge declined to suspend an interim injunction obtained by a sacked worker stopping the firm’s takeover by Swiss-based Puma Energy.
Industrial Court judge Njagi Marete threw out an application filed by the listed oil marketer seeking lift the orders granted to Joseph Kamau Thuo and said the acquisition would remain suspended until the dispute is heard and concluded.
“The application for injunction as prayed would stand and the respondents (KenolKobil) will remain injuncted,” ruled Justice Marete on October 3.
The judge, however, said the suit, being a delicate balance of an industrial relationship gone sour and whose balance was critical to the lifelines and economic welfare of both parties, recommended to the parties to explore an avenue of alternative resolution mechanism.
“This is a win-win situation that is healthy and appropriate for proper industrial dispute resolution where the end is not final and adversarial,” observed the judge.
On August 30, Lady Justice Monica Mbaru issued a temporary injunction stopping the implementation of an agreement between KenolKobil and Puma Energy.
Ms Mbaru also blocked KenolKobil from entering into similar arrangement that could take the Kenyan company’s control from its current shareholders and directors to the detriment of Mr Thuo’s interests.
He sought legal redress after he was sent packing together with 14 fellow workers on August 10. He claims he was dismissed for under-performance barely a month after being awarded a Sh10,000-pay increase after an excellent appraisal.
He is seeking Sh13.5 million as accumulated monthly salary he would have earned for three years to his retirement and Sh4.5 million, equivalent to 12 months’ gross salary at the time he was sent home. He is also seeking Sh5.4 million severance dues.
The injunction comes in the wake of a similar order by the Industrial court restraining KenolKobil from closing the Puma transaction until a dispute with more than 200 non-unionsable workers is determined.
The employees blocked the deal after persuading the court the Puma would restructure the firm and send them packing.
The workers have also been allowed to pursue contempt of court proceedings against general manager David Ohana for defying the court orders by sacking them.
Puma’s intended takeover of the oil marketer is facing more legal challenges after Kenya Pipeline Company joined the fray last month when it obtained court orders stopping the deal.
The High Court blocked the oil firm from transferring or entering into any sale agreement with Puma or third parties until a suit lodged by KPC is heard and determined.
KPC is demanding Sh2 billion from KenolKobil, arising from services rendered in transporting and storing the firm’s oil products between June 2009 and September 2010.
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