A legal tussle has erupted between Portside Freight Terminals Ltd, a company linked to the influential Joho family, and the Kenya Ports Authority (KPA) over a prime piece of land within the Mombasa port.

At the heart of the dispute is a parcel of land identified as Mombasa/Block 1/492, BP Shed 6, which Portside claims to have leased and subsequently registered in July 2022.

The company alleges that it entered into an agreement with KPA to suspend development on the land in exchange for an alternative plot of equivalent size.

This arrangement was reportedly part of a settlement reached in a previous legal dispute concerning two sheds, numbers five and six.

However, Portside maintains that KPA has failed to honour its commitment to provide the promised alternative site for shed six.

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Despite completing construction on shed five, the company asserts that it has been unable to proceed with development on shed six due to alleged obstruction by KPA.

"Development of shed five is now complete and is in use but not for shed six which, by either deceit or otherwise, the respondent caused the petitioner to stop construction works which should have been completed within 12 months as provided in the lease," the petition reads.

Portside contends that KPA's actions amount to a breach of contract and a violation of its constitutional right to property.

In a petition filed at the Mombasa High Court, Portside is seeking a declaration of ownership over the leasehold interest, an injunction to bar KPA from interfering with its development plans, and financial compensation for any losses incurred.

"This court is duty bound under the Constitution to protect the petitioners’ fundamental rights relating to property as ordained by the provisions of Article 40 of the Constitution," the suit documents state.

The company argues that KPA's decision to convert shed six into a storage facility represents a blatant disregard for its rights.

The legal battle between the Joho-linked firm and the state agency is set to unfold in the coming months, with the first procedural hearing scheduled for August 7.

The outcome of the case will have significant implications for both parties and could potentially set a precedent for future land disputes involving government agencies and private entities.

As the case progresses, public attention will undoubtedly focus on the details of the agreement between Portside and KPA, the specific reasons for the alleged breach by the port authority, and the potential impact of the dispute on port operations and the wider economy.