Maize miller’s Ksh.90M suit against Mombasa grain handler delayed again

A commercial dispute between a Mombasa-based maize miller and the country’s main bulk grain handling company has suffered yet another delay, nearly six years after it was first filed.

Grain Bulk Handlers Limited (GBHL), also known as Bulkstream Ltd and associated with Mombasa businessman Mohamed Jaffer, is being sued by Mombasa Maize Millers over an alleged breach of contract involving grain supplies valued at more than $703,000 (about Ksh.90 million).

The case was scheduled for hearing on Tuesday before the High Court in Mombasa but was adjourned after both sides cited challenges with their witnesses.

Justice Florence Macharia allowed an application by Bulkstream to postpone the hearing after the company told the court that its only listed witness had been bereaved and was unable to testify.

“Your Honour, we are seeking an adjournment since the witness scheduled to testify today has lost a relative and may be unable to proceed,” the defense lawyer told the court.

On its part, Mombasa Maize Millers said one of its lawyers handling the matter was unwell. Through counsel, the company indicated that the parties had agreed to have the case removed from the day’s cause list.

The court subsequently rescheduled the hearing to May 7, when both sides are expected to present their witnesses.

Bulkstream operates the country’s only dedicated bulk grain handling facility at the Port of Mombasa, through which most imported grain passes before distribution to millers across the country.

The company has long dominated port-based grain storage and handling since 2000, although calls have intensified in recent years for licensing of a second facility to boost competition. New players, including Portside Freight Terminals, have begun entering the sector.

The latest dispute is not the first time Grain Bulk Handlers has faced legal battles over its operations.

In an earlier case, Atta Kenya Limited sued the company over the alleged illegal auction of 13,196 metric tonnes of wheat, seeking Ksh.730 million in compensation.

Court documents in that matter showed the wheat was sold to Grain Industries Limited for Ksh.217 million, with the importer alleging the process was tainted by conflict of interest and fraud.

Atta Kenya claimed that between 2013 and 2014 it had contracted Louis Dreyfus Company to purchase 38,500 metric tonnes of milling wheat, of which 29,500 metric tonnes were shipped into Kenya aboard two vessels, Kiran Marmara and Clippers Bliss.