In a significant ruling, the Environment and Land Court has ordered the Kenya Railways Corporation (KRC) not to interfere with the tenancy of Jihan Freighters Limited at the Port of Mombasa.

This decision comes as the logistics firm awaits the outcome of a petition it has filed against KRC, which initiated eviction proceedings.

Judge Stephen Kibunja emphasised that while KRC may be liable for compensation should the court rule in favour of Jihan Freighters.

"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," Kibunja stated.

The controversy erupted when KRC alleged that Jihan Freighters had breached its tenancy agreement by using the property to sell tuk-tuks, prompting the corporation to terminate the firm’s nine-year lease.

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KRC further claimed that the tenant sub-let the premises to third parties and undertook construction without the necessary permissions.

However, Abdalla Salim Omar Abubakar, the director of Jihan Freighters, has refuted these allegations, stating that KRC's actions were motivated by a need for space to facilitate the movement and storage of fertiliser from the port by rail.

Abubakar detailed that the original tenancy agreement, which commenced on June 1, 2022, involved a monthly rent of Sh4.8 million plus VAT of Sh192,000.

He highlighted that the lease included provisions for renewal upon expiration, and that Jihan Freighters had made improvements to the property with KRC's knowledge.

Additionally, he noted that while the company had consistently raised rental invoices subject to VAT, it failed to do so in October and November 2023 due to KRC's interference.

The director has also sought a site visit from the court to counter KRC's claims of misuse of the premises, asserting that the photographs presented by KRC as evidence of the alleged tuk-tuk sales did not originate from the leased property.

With the court's ruling, Jihan Freighters can continue its operations at the port while the legal battle unfolds, potentially influencing the logistics and agricultural sectors reliant on the space for distribution activities.