The High Court in Mombasa is expected to rule on a case where the National Land Commission (NLC) was ordered to recover Ksh1.8 billion, which had been unlawfully paid to Mombasa businessman Mohammed Jaffer.
This payment went to a company linked to Jaffer, Miritini Free Port.Previously, Resident Judge Olga Sewe had delayed delivering the ruling due to various reasons.
In March, she stated that she forgot the case file in Kwale, where she was holding court.
In May, she cited her assignment to a three-judge bench as the cause of delay. In June, the judge said she was unable to issue a ruling as she had been in Nairobi on official business.
This marks the fifth time the court has failed to deliver judgment.
Miritini Free Port is seeking to overturn an earlier ruling by Judge Erick Ogolla, who had ordered that the money be refunded, calling the payout unlawful.
Four petitioners, represented by lawyer Gikandi Ngubuini, have asked the court to freeze the payment to Jaffer until the petition is fully heard and resolved.
The disputed amount was paid to Miritini Free Port instead of going to petitioners who claim rightful ownership of the land.
They argued that they had been relocated from Bombolulu to make way for a children’s home.
In 2021, Justice Ogolla ruled that Miritini Free Port knowingly accepted taxpayer money for land that had been fraudulently acquired by the NLC.
He criticized the NLC for approving the compensation despite knowing the land belonged to squatters.
The constitutional review petition, filed by Miritini Free Port, names Theresia Runji, Marieta Gitonga, Naomi Kiio, Sammy Kara, and the NLC as respondents.
The matter will be mentioned on September 26 for further directions after numerous delays in the ruling against Jaffer.
Separately, Mohammed Jaffer’s company, Grain Bulk Handlers Limited, is also facing accusations of defrauding importer Atta Kenya Ltd of Sh730 million.
Court documents reveal that the dispute arose over the storage and auction of 13,000 metric tonnes of wheat.
Between 2013 and 2014, Atta Kenya entered into contracts to import 38,500 metric tonnes of wheat, 29,500 tonnes of which were stored at Grain Bulk Handlers’ silos.
Atta Kenya fell behind on storage payments after their bank failed to meet financial obligations.
Despite attempts to negotiate alternative financing, Grain Bulk proceeded with the auction of the wheat.
In June 2017, Beyond Auctioneers placed a newspaper notice for the sale of 13,196 tonnes, with Grain Industries winning the bid.
LDCI, which sold the wheat to Atta Kenya, moved to court to stop the sale of 6,964 tonnes, claiming that Atta Kenya hadn’t cleared the amount due.
Atta Kenya countered that it had paid all necessary charges, including customs fees and warehouse storage costs.
During court proceedings, Grain Bulk’s legal officer Joseph Mwela was questioned over the company’s haste to auction the wheat.
Atta Kenya’s lawyer, Miller Bwire, also highlighted the connection between Grain Bulk and Grain Industries, suggesting that Jaffer’s companies colluded to defraud the importer by selling the wheat at a discounted price.
Mohammed Jaffer, who also owns Progas Kenya and Proto-Energy, is being accused of using monopoly power in the gas industry to dominate, much like his influence in the grain industry.
Add Comment