Kenya Power has been spared from paying Sh71.5 million fine to African Merchant Assurance Company Limited after a fire.
The electricity got the reprieve after appealing against the High Court judgement which ordered it to pay the assurance company the aforementioned amount as compensation for the losses caused by a fire in Malindi where several premises were affected.
Court of Appeal Judges Martha Koome, Alnashir Visram, and Wanjiru Karanja said Kenya Power’s appeal had merit and the previous judgement was set aside.
Kenya Power argued at the High Court that the insured people were supposed to take the case to court and not the insurance company. Additionally, the firm said it did not have a contract with the insurance company and, therefore, “did not owe it a duty of care.”
The company also said the contract on supplying electricity was between itself and those insured by the insurance company.
Kenya Power also faulted the award of damages brought before the High Court arguing that the judge did not effectively look into the documents presented.
The power company said that if the judge had scrutinised the documents he would have realised that there were discrepancies in the policy documents or the payment discharge vouchers given by the insurance company.