By Andrew Kariuki
Mahadi Energy Limited has filed a petition at the Milimani High Court seeking to halt the planned auction of its container freight station and other assets in Mombasa, terming the move unlawful and a threat to national trade operations.
Speaking during a press briefing in Nairobi, counsel Danstan Omari, representing Mahadi Energy, said the auction, linked to a loan dispute with Premier Bank, risks paralyzing key cargo handling services and disrupting regional supply chains.
Omari revealed that the case was initially filed in Mombasa before being transferred to the Milimani High Court, yet the bank allegedly failed to disclose the existence of related proceedings in Mombasa.
“It is a national issue,” Omari said. He also stated that Mahadi Energy is the third largest container depot in Kenya and its closure affects not only Kenya’s economy but also many other regional countries’ .
According to Mahadi Energy, the freight station handles shipments destined for several East and Central African countries, including Tanzania, Uganda, Burundi, Mozambique, South Sudan, Ethiopia, and Djibouti.
The company estimates that cargo and materials worth over Ksh 14 billion remain locked within the facility, some of which are perishable goods.
Omari further noted that the continued closure is causing significant losses in revenue and employment opportunities, warning that the situation could have long term effects on tax collection and port competitiveness.
The matter is now pending before the Milimani High Court, where Mahadi Energy is seeking conservatory orders to suspend the auction until the legality of the sale is fully determined.
