Local Businessman Locks Horns with Kenya Port Authority

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Local Businessman Locks Horns with Kenya Port Authority

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Arusha Times (Arusha)

October 6, 2008

News Article

The first commercial case ever to be filed before the East African Court of Justice based in Arusha will be heard soon.

The court which started operations in 2001 will hear a suit of a Tanzanian businessman who is suing the Kenya Port Authority for loss amounting to USD 24million for imports he ordered from abroad through the Mombasa port early this year and never delivered.

Mr. Anselm Minja of the Arusha-based Modern Holdings (East Africa) Limited filed the case at the East African Court of Justice in Arusha last week demanding compensation and general damages.

In the suit, the businessman claimed that his imports which were routed through the Kenyan major harbour from Dubai late last year expired because of negligence of the port officials.

He said his 21 containers with a range of juices and mineral water that he imported could not be cleared in time from the port by officials in January this year and subsequent months, incurring a loss of $ 24m.

He claimed that initially the port officials attributed the delay to clear the cargo in time to the post election violence that rocked various parts of Kenya after the December 27 General Election.

However, Mr. Minja, who had been importing Masafi juices and mineral water from Dubai since 2006, has disputed the claim, arguing that the port operations were disrupted by the violence for only a few days.

In the suit, the Arusha businessman is represented by a prominent Kenyan lawyer Paul Muite as a lead counsel, advocate Kioko Kilukumi also from Nairobi and John Umbulla from the Imboru Advocate Chambers based in Arusha.

The suit was filed and handed over on Wednesday to EACJ registrar Dr. John Ruhangisa who said a notice by the complainant would be served to KPA.

"Once they respond, a hearing date for the case would be set" he told reporters, adding that this was the first commercial case to be filed before the regional Court which started operations in 2001.

The businessman, in his suit, claims that every effort was made to have his cargo released since he started "negotiations" with the port authorities over the matter in February this year.

Modern Holdings (EA) Limited had already paid KSh 3m to have the juices and mineral water, which have a short shelf life, released but to no avail. Even before the imported goods expired the storage charges have gone up to KSh. 7m.

The Tanzanian company is blaming KPA management for transferring his consigment to Makupa Transit Shade, a container terminal at Mombasa port which, he claims, could be operating in suspect circumstances.

According to Mr. Minja, all efforts were made to have the containers released, adding that at one time they sought the intervention of Kenyan minister for Transport Ali Chirau Makwere.

He noted that even written waivers from KPA senior officials to Makupa terminal to have the containers released were turned down, leading to the expiry of his goods.

The Arusha-based firm is an agent for East and Central Africa of Masafi products from Dubai. The consignment which was stranded at the Mombasa port was to be sold in Kenya, Tanzania, Uganda, Rwanda, Burundi and Southern Sudan.

Advocate Muite told reporters during the filing of the case that the claimant had a distribution agreement with Masafi products which incidentally had a limited shelf life and had to be sold within limited time.

"KPA was aware of that, Despite that KPA proceeded to obstruct processing the release of goods until the goods expired. Until now the containers continue to be held there," he explained.

Obstruction of the containers at the Mombasa port and subsequent expiry of the imported items led to cancellation of the distribution agreement in the EA region between the importer and the Dubai firm.

"The claimant has incurred damages and losses amounting to $ 24m. He is also claiming general damages which is left to the Court to assess. This is to include two years' profit with option to renew the contract," he said.

The suit contains several correspondences over the matter, including directives from the Kenyan ministries of Finance and Transport, the Commissioner General of the Kenyan Revenue Authority and officials in charge of Customs Department to have the containers released.

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