Police evict firm from Mombasa CFS amid court contradictions

Police move to evict Shabeel Project Services from a Mombasa Container Freight Station amid conflicting court orders. [File, Standard]

Varying court orders from courts yesterday led to a temporary standoff between police officers from Mombasa and Nairobi over the ownership of a private Container Freight Station (CFS). 

Fifty police officers stormed the CFS located in the Chaani area of Mombasa to evict Shabeel Project Services Limited, which claims to have bought the land through an auction by Premier Bank.

Mahidi Energy Limited lost the property in an auction after it failed to pay a Sh631m loan from Premier Bank. It moved to court and obtained a conservatory order from Justice Olga Sewe to stop its eviction.

However, Shabeel later obtained a temporary order from Justice Gregory Mutai lifting Justice Sewe's orders, which allowed it to take over the CFS it allegedly bought at the auction.

Later, Justice Mutai reviewed his orders and reinstated Justice Sewe's orders that barred Mahindi Energy Limited's eviction, according to court documents.

After this, Shebeel filed another application in the Nairobi High Court and obtained a stay order, essentially allowing them to continue to operate the CFS until the case is determined.

In an order issued by Justice Mohamed Kullow of the High Court in Nairobi, on October 23, 2025, the eviction of Shabeel from the multi-billion CFS was temporarily stopped.

Yesterday, Mahidi's legal team claimed that they relied on Justice Mutai's orders to evict Shebeel.

Mahidi's legal team, accompanied by over 50 police officers from Nairobi, stormed the CFS in Mombasa to evict Shabeel Project Services Limited from a disputed multi-billion land.

Sources from the security sector said the police were acting on instructions from the Inspector General (IG) of Police.

In a letter seen by The Standard, the IG instructed officers from DCI to ensure that Mahadi Energy Limited was reinstated into the premises.

Yesterday, Shabeel Project Limited lawyer Cate Omusolo said there were existing orders stopping the police from harassing and evicting the logistics company from the suit premises.

Omusolo said Shabeel, being the lawful owners of the CFS, obtained stay orders stopping their eviction from the premises by Mahadi, having been brought into the suit as interested parties.

Justice Kullow had ordered OCS Chaani Police Station, Mombasa, Pangani Police Station and Akila Police Station in Nairobi to assist Shabeel in taking over the property.

“THAT pending the hearing and determination of the application, a temporary order of injunction is hereby issued restraining the Mahadi Energy Limited from forcefully entering into or in any way interfering with the properties and Basheel Project Services Limited’s quiet occupation pending the hearing and determination of the application,” said Justice Kullow.

"That the Officer Commanding Station (O.C.S.) Chaani Police Station – Mombasa, Pangani Police Station and Akila Police Station, both in Nairobi, are directed to assist in the enforcement of this order,” he continued.

Likewise, Mahadi obtained an order from Justice Gregory Mutai dated October 7, 2025, that stopped their eviction from the suit land.

According to court records, Justice Mutai had reinstated Mahadi Energy Limited to the suit property through an order dated October 7, 2025.

The reinstatement orders were pursuant to Justice Olga Sewe’s orders dated October 25, 2024, that stopped the eviction of Mahadi from the suit premises pending the determination of applications filed regarding the dispute.

In his ruling, Justice Mutai noted that there were applications dated October 18, 2025, and November 13, 2025, still pending and yet to be determined by the court.

Justice Gregory admitted that due to the multiplicity of applications and counterapplications, the court made an honest error in directing that the main petition be heard on a priority basis when the said applications are still pending.

“The error that this court made falls within the ambit of the said definition. In the circumstances, I allow the application. "I reinstate the conservatory orders issued on October 25, 2024, pending the hearing and determination of the notice of motion applications dated October 18 and November 13, 2024, which applications shall be heard together on a priority basis,” said Justice Mutai.

At the centre of the suit exist several conflicting court orders by different judges allowing for the eviction of Mahadi Energy Limited from the premises and reinstatement into the suit premises.

From the court records, Mahadi Energy lost ownership after the same was auctioned by Prime Bank to Shabeel Projects Services Limited.

Mahadi had lost possession of the suit property through an auction by Prime Bank, which sold the land to Shabeel Project Services Limited.

Mahadi filed a petition suing Prime Bank, the Attorney General and the Kenya Bankers Association and cited the Kenya Law Reforms Commission, Shabeel Projects Services Limited and Ultra Eureka Limited as interested parties.

In their application before Justice Mutai, Mahadi Energy Limited said the lifting of the conservatory orders would expose them to irreparable harm, as they were in danger of losing the suit properties through further sales, transfers, and dealings of the said properties.

Mahadi Energy Limited said that with the aid of Officer Commanding Chaani Police Station and hired goons, Shabeel and Prime Bank tried to evict them.

Mahadi Energy said that its sister company, Mahadi Container Depot Ltd, operates a container depot and cargo transportation business that currently holds over 3,000 containers and dozens of lorries belonging to their customers on the premises.

Mahadi said the invasion had led to losses amounting to US$70,000 and further charges for failure to repatriate over 200 containers that were due to be loaded onto awaiting vessels.

Mahadi sought orders for the preservation of the suit properties and for the parties to be heard substantively on their application dated October 18, 2024, and in respect of all the pending applications.

On November 7, 2024, Justice Sewe granted an order of inhibition and added Shabeel Project Services Ltd as an interested party to these proceedings.

In the suit, Shabeel told the court that it acquired the suit property through an auction from Prime Bank between August 14 and September 4, 2024.