Kenya Railways Corporation (KRC) should not interfere with the tenancy of a logistics firm at the Port of Mombasa, pending the determination of a petition filed by the company.
Environment and Land court judge Stephen Kibunja, ruled that although KRC might compensate Jihan Freighters Limited for the damages suffered or likely to be suffered, should the court find in favour of the firm, it does not make any economic sense to continue inconveniencing the company while the premises sits idle.
“The balance of convenience tilts in favour of issuing the order, and in so doing, helps in reducing the damages that the respondent, and by extension the public, is likely to be condemned to pay should the petitioner succeed in the petition,” said the judge.
Jihan Freighters moved to court after KRC kicked it out of the sheds over claims of using the suit property to sell Tuk tuks, thereby substantially breaching the tenancy agreement.
KRC said the tenant also breached the agreement by sub-letting the premises to third parties, and carrying out construction works without its consent.
But the firm through its director Abdalla Salim Omar Abubakar denied the claims and stated that the KRC terminated the nine-year tenancy agreement on claims that the government required space to facilitate movement and storage logistics of fertiliser from the port of Mombasa by rail for distribution to farmers.
Mr Abubakar entered the tenancy agreement on June 1, 2022, for a period of nine years to be paying a monthly rent of Sh4.8 million plus VAT of Sh192,000 per month.
He added that the agreement provided for the renewal of the lease for a negotiated period upon expiry.
He said the company has improved the suit property with the knowledge of the corporation and that the firm has been raising rental invoices subject to VAT, but it failed to do so in October and November 2023.
Mr Abubakar said that through a letter on January 24, 2023, KRC terminated the tenancy.
He invited the court for a site visit to ally claims that he was using the premises for a car bazaar and that photographs attached by the corporation showing tuk-tuks were not taken from the premises.
