Wednesday, July 24, 2024
Business

Mohamed Jaffer's Grain Bulk company undersiege as Ruto ends 24 years grain handling Monopoly

wealthy businessman, Mohamed Jaffer's Grain Bulk Handlers Ltd (GBHL)

In a significant move, the Court of Appeal has granted permission for a second company to set up its operations at the Mombasa port, thereby breaking the monopoly of grain handling previously held by the wealthy businessman, Mohamed Jaffer’s Grain Bulk Handlers Ltd (GBHL). 

This ruling comes as a major relief for other players in the industry who have been struggling to compete with GBHL’s dominance in the market.
The judges of the Court of Appeal, namely Pauline Nyamweya, Imaana Laibuta, and George Odunga, have overturned a previous High Court decision that had prevented the Kenya Ports Authority (KPA) from awarding the contract to construct a second facility at the port to Portside Freight Terminals. 
The judges have observed that the High Court had erred in its judgment and that the KPA and the Treasury had acted in accordance with the law while selecting Portside for the contract. 
The Court of Appeal has further stated that the awarding of the contract to Portside was not discriminatory and that it was a legitimate decision. 
This ruling is expected to bring some much-needed relief to the players in the industry who have been facing a tough time due to the monopoly of GBHL.