Court orders Kenya Railways to account for cargo container revenues in Sh173bn row

The High Court has ordered the Kenya Railways Corporation (KRC) to provide a full financial accounting of all revenues generated from leasing and using 250 cargo containers since 2018.

This legal directive follows a major Sh173 billion dispute between the state-owned rail company and ATI Freight Kenya Limited (ATI), a local logistics firm that claims ownership of the units.

The massive financial standoff touches on unpaid freight charges, accumulated demurrage fees, and the continuous commercial utilization of the container assets over nearly a decade.

According to court filings, the row escalated significantly after Kenya Railways Corporation admitted to deploying the containers for its own commercial operations.

The state corporation maintained that it absorbed the units into its freight systems to recover outstanding debts allegedly owed by ATI Freight Kenya Limited.

However, the logistics firm countered this move by demanding a transparent financial breakdown, pointing out that Kenya Railways Corporation had failed to provide accounts for the revenues accumulated from the assets.

The ongoing litigation has also drawn in Stanbic Bank Kenya Limited as a key third-party player tied to the broader financial arrangements of the shipping assets.

Legal representatives for the logistics firm argue that the continuous use of the equipment without financial oversight remains a clear breach of commercial procedures.

With the High Court now stepping in, the state rail utility must compile and present verified ledger books and income statements covering the seven-year period.

The outcome of the financial audit is expected to shape the final settlement of the multi-billion shilling claim, which continues to spotlight asset management friction within Kenya's main transport and transit corridors.