A prominent city law firm is currently engaged in a legal battle with the Energy and Petroleum Regulatory Authority (Epra) over a fee demand exceeding Sh73 million.
The demand is attributed to the law firm’s representation of the State agency during a contentious dispute involving oil giant Total Kenya and Kenya Petroleum Refineries.
S.M. Kilonzo & Associates Advocates made their initial request for payment in March, arising from their involvement in a case that was ultimately dismissed by the High Court in July 2021.
In a letter dated August 3, 2023, addressed to Epra, the law firm expressed their intention to proceed with the submission of a bill of costs if the outstanding fee note remains unsettled within the next seven days.
At the heart of the matter lay a dispute between Kenya Petroleum Refineries and Total Kenya, centered on compensation for yield shift losses.
These losses stem from the disparity between actual crude processing yields and anticipated yields.
Total Kenya, alongside other oil companies, has demanded in excess of Sh2 billion from Kenya Petroleum Refineries.
The case has been referred to the Energy Regulatory Commission for a final decision.
The law firm is demanding Sh31.5 million as instruction fees alone based on the value of the subject matter and its lawyers’ appearance in court five times since 2017 when the case was filed until its dismissal.
