Ports authority loses bid to regain property

Kenya Ports Authority (KPA) has lost the fight to kick out a Mombasa tycoon from a prime plot, along Likoni Channel, that was leased to his company in 1950.

KPA owns the land but has had to contend with a 99-year colonial lease granted to John Grossert and Company since 1950. Al Noor Habib Jiwan, which owns African Marine and General Engineering Company (AMGECO), acquired majority shareholding in John Grossert Company after independence thus inheriting the lease.

The Ethics and Anti-Corruption Commission (EACC) claims Al Noor's acquisition of John Grossert was fraudulent and wrote to KPA to revoke the lease.

Al Noor went to court challenging a notice by KPA to terminate the lease or alternatively provide reasons why it should stand. Al Noor argues that KPA and EACC have no legal authority to revoke the lease it says was legally given by the government.

On Friday, Justice Ogola made the order after John Grossert directors successfully applied to be protected from KPA's and EACC's move to have a lease certificate for plot number MSA/block/XLVII/73, under the name of John Grossert Company, revoked.

The judge said after careful consideration of facts, he had found that John Grossert is the lawful owner of the plot after KPA admitted in its documents in court that the land belongs to the company.

“The net effect of KPA response is that the suit property is lawfully leased to the petitioner and the petitioner is in lawful occupation” said Justice Ogola.

The judge said changes of directors of the company did not affect the lease  or the period for which the lease was granted.

Alnoor in his petition accused KPA of demanding that the company returns the lease certificate.

Alnoor complained that on May 19, 2017 he received a letter from EACC claiming the current directors of the John Grossert Company had fraudulently transferred and acquired the shares of that company.

He said  EACC issued directives to KPA to take urgent measures to secure the suit property by lodging a caveat at Lands office in Mombasa and recall the certificate of lease held by the company through a parent company AMGECO and have the title revoked.

Following the demand letter by EACC, KPA also wrote a demand letter to John Grossert Company to return the certificate of lease within seven days or give a satisfactory explanation why the plot should not be reverted to KPA.

KPA as the custodian of all land previously owned by the defunct East African Harbours -the property was transferred to it after the collapse of East African Community in 1978- insisted the company breached a contract between them.

According to KPA, the company used the title deed to secure a loan without the approval of board of directors. It also accused the company of failing to develop the plot in question as agreed.

KPA legal officer Michael Sangoro in his affidavit, said when they visited the plot in 2014 there was no development.

It also claimed there is an existing order stopping any dealings with the land following a case in which Jane Rose Wanjiku is also laying claim over the land.