The Kenya Railways Corporation (KRC) should not interfere with the hiring of a logistics company at the Mombasa Port, pending the determination of the company’s petition.
Environment and Lands Court judge Stephen Kibunya ruled that although KRC may compensate Jihan Freighters Limited for damages it has suffered or is likely to suffer, if the court finds in the company’s favour, it does not make economic sense to continue disturbing the company while the building He sits idle.
“The balance of interest is tilted in favor of issuing the order, thereby helping to reduce the damages that the respondent, and by extension the public, would likely be ordered to pay if the petitioner were successful in the petition,” he said. judge.
Jihan Freighters moved to court after KRC evicted it from the hangars over allegedly using the property to sell tuk-tuks, thus significantly violating the rental agreement.
KRC said the tenant also violated the agreement by subleasing the building to third parties and carrying out construction work without its consent.
But the company, through its director, Abdullahi Salim Omar Abubakar, denied the allegations and stated that KRC terminated the nine-year lease based on allegations that the government requested space to facilitate the movement and storage of fertilizers from Mombasa port by rail for distribution to farmers.
Mr Abubakar entered into the lease agreement on June 1, 2022 for a period of nine years to pay a monthly rent of Sh4.8 million plus VAT of Sh192,000 per month.
He added that the agreement stipulated the renewal of the lease for a period to be negotiated upon its expiration.
He said that the company had improved the property with the company’s knowledge and that the company had raised rent invoices subject to VAT, but failed to do so in October and November 2023.
Mr Abubakar said that through a letter dated January 24, 2023, KRC terminated the lease.
He called on the court to visit the site to support his claims that he was using the building for the car market and that the photos attached by the company showing the tuk-tuk were not taken from the building.
Comments are closed, but trackbacks and pingbacks are open.