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The High Court has refused a bid by Stanbic Bank Kenya to stop Kenya Railways from releasing or disposing of 255 tank containers linked to ATI Freight Kenya Ltd, in a dispute that includes a contested award of more than KSh193 billion in storage charges.
Justice L.M. Wachira dismissed the application with costs in a ruling delivered on 12 November 2026 in Commercial Case E437 of 2019 at the Commercial and Tax Division in Nairobi.
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How the ATI Freight dispute began
Stanbic says it lent money to ATI Freight and that the tanktainers held by Kenya Railways were security for those facilities. In its appeal papers the bank says facility letters dated 8 August 2018 and an amendment dated 24 December 2018 were in its trial bundle. In September 2019 it asked the corporation to hold the containers to its order, then sued seeking delivery of the 255 units.
In a judgment on 12 May 2026, the court dismissed Stanbic’s claim against both defendants, finding the bank had not proved the debt it relied on. It entered judgment for Kenya Railways on its cross-claim against the logistics company.
According to the ruling, the cross-claim sought KSh46,529,697 and USD 1,342,811,213.85 (about KSh174.5 billion) in cargo movement and demurrage charges, plus a lien over the tanktainers. Kenya Railways’ witness told the trial that the principal demurrage and storage sum stood at USD 22,906,400 (about KSh2.98 billion) as at 2 October 2020.
ATI Freight backs Stanbic, challenges KSh193bn award
ATI Freight, which says it owns the tanktainers, supported the bid to preserve them. It said it is appealing against “the award of over Kshs.193 billion in storage charges”, arguing the charges were neither contractual nor backed by any statute or trade practice. The logistics firm’s own notice of appeal also challenges the dismissal of its claim over vandalised tanktainers. It questioned how Kenya Railways could have used the units while holding the company liable for demurrage over the same period.
Kenya Railways, through Corporation Secretary Stanley Gitari, opposed the application, saying it had no contract with Stanbic and is entitled to a lien until its cross-claim is paid. It asked for KSh10 million in security if any order was granted.
Why the court said no
The judge found the application was filed without delay, 13 days after the judgment, but said Stanbic had not shown substantial loss. “The fact that the Plaintiff has filed a Notice of Appeal… is not, on its own, sufficient reason to restrain the 2nd Defendant from exercising rights arising from the judgment,” the ruling said. A request to pause the assessment of costs was also refused.
Both the bank and the freight company have filed notices of appeal, so the fight over the containers and the storage bill now moves to the Court of Appeal. Read more on Stanbic Bank Kenya’s leadership, doing business with Kenya Railways and another Stanbic loan dispute.
Frequently asked questions
What did the court decide in the ATI Freight case?
On 12 November 2026 the High Court dismissed Stanbic’s application to stop Kenya Railways releasing or disposing of the tanktainers pending appeal.
How many tanktainers are involved?
Stanbic’s suit sought delivery of 255 containers held by Kenya Railways.
Why does Kenya Railways hold the tanktainers?
It claims a lien over them until ATI Freight pays cargo movement and demurrage charges awarded on its cross-claim in May 2026.
Is the case over?
No. Stanbic and ATI Freight have both filed notices of appeal against the May 2026 judgment.
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