Judicial Block on State Hindrance to Joho’s South Sudan Cargo Deal
The High Court has temporarily prevented the government from interfering with a deal that permits a company affiliated with former Mombasa governor Hassan Joho to manage cargo bound for South Sudan.
Justice Alfred Mabeya issued an order prohibiting Kipchumba Murkomen and Simon Chelugui from interfering with the existing arrangements between the government, Autoports Nairobi Freight Terminal Ltd, and Compact Freight System.
According to evidence presented in court, Mr. Chelugui threatened to instruct the Kenya Ports Authority (KPA) not to honor the agreement.
“Having determined that the petitioners’ appointment was lawful and having considered the evidence submitted in support of the various investments they made after their appointment, the petitioners would suffer prejudice if they were prevented from carrying out their duties,” Justice Mabeya stated.
The judge deemed the application imperative and issued a temporary restraining order prohibiting the government from interfering with the plan pending the outcome of the case.
The companies, through their attorney Philip Nyachoti, asserted that they were authorized to operate container freight stations (CFS) by the Kenya Revenue Authority (KRA). Moreover, in a letter dated 13 December of the previous year, CS Transport Kipchumba Murkomen instructed KPA that all cargo destined for South Sudan traveling through the port must be handled and stored by the two companies after verification.
Mr. Nyachoti added that the companies had made substantial investments to develop and enhance the efficacy of their warehouses. He stated that Compact Freight had invested over a billion shekels in the infrastructure required to execute the contract.
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According to him, the enterprises should operate for 10 to 15 years to recoup their substantial investment. The attorney stated that Mr. Chelugui could not reverse the actions of another cabinet secretary.
Transport Principal Secretary Mohamed Daghar stated on behalf of the government that it had no authority to appoint clearing and forwarding agents for any importer or exporter.
The PS stated that in a letter dated November 9, 2022, the South Sudanese government appointed the two companies as its preferred CFS, which was accepted by the Kenyan government.
Mr. Daghar stated that it is in Kenya’s best interest for landlocked nations to utilize the inland container depots in Nairobi and Naivasha until President William Ruto directs them to return to Mombasa Port.
On this premise, he explained, the Government of Kenya advised the Government of South Sudan to continue utilizing the Nairobi and Naivasha inland container depots, although South Sudan is free to select its preferred cargo clearance point.
The PS stated that the firms had failed to demonstrate that the Kenyan government had acted in a manner that constituted or was likely to constitute a violation of their constitutional rights.
In addition, Mr. Daghar stated that the case is predicated on untraceable rumors.
Judicial Block on State Hindrance to Joho’s South Sudan Cargo Deal
