Dozens of importers and transporters have been caught up in a feud between two tycoons battling for control of prime warehouse facilities near the Mombasa port, leaving hundreds of containers stranded.
Truck owners and traders using the Mahadi Container Freight Station (CFS) say they have been unable to access the premises after a new owner took over the facility, which sits on two adjacent plots along Port Reitz Road on the SGR bypass.
Sha Beel Project Services Limited, the new owner, took possession of the property from Mombasa-based oil and gas tycoon Ibrahim Hussein Mahadi after securing a court order on August 14, 2024.
Roy Mwanthi, one of the affected truck owners said his three trucks were locked inside the facility since Saturday while dropping containers. “We are incurring losses since my trucks have been grounded. I have engaged the auctioneer, who is acting on behalf of the new owner, to release our vehicles.”
Other traders who use the CFS as a container depot and storage yard were also inconvenienced after police were deployed to guard the premises and block Mr Mahadi’s team from accessing it.
Allan Samuel Otieno of Nextgen Auctioneers, who is currently managing the site, said the new owner bought the facility last August after Premier Bank auctioned Mr Mahadi’s properties over a defaulted loan.
According to court papers, Nextgen Auctioneers was authorised to facilitate the takeover, with the police boss at Chaani directed to provide security during the transition.
“The owner followed all procedures, and the transfer of titles was effected. However, Mr Mahadi went to court seeking conservatory orders to stop my client from moving in. On September 29, 2025, the court lifted the orders and allowed the new owner to take possession,” said Mr Otieno.
He added that efforts are underway to release all consignments and trucks still inside the yard.
“We understand that holding property unrelated to the facility is illegal. We have asked anyone with a truck or container at the site to provide documents such as the Import Declaration Form (IDF) and vehicle logbooks to prove ownership,” he said.
The IDF, issued by the Kenya Revenue Authority’s Customs Services Department, declares the customs value of a consignment. Mr Mahadi has been locked in a legal battle with Premier Bank to stop the auction of his properties over an alleged debt running into billions of shillings.
His assets, valued at about Sh3.6 billion, include the Mombasa CFS, his family home in Nairobi’s South C, and two vacant plots in Eastleigh. The Eastleigh properties in Nairobi fell to the hammer on August 14, 2024, while the Mombasa facilities were auctioned on September 4, 2024.
Court filings show that Premier Bank and at least two individual creditors were seeking to recover funds from Mr Mahadi’s properties, sparking multiple lawsuits and counterclaims from the tycoon and other parties claiming ownership or investment interests.
