UN goods held over Sh28m row between logistics firms

A Mombasa court has issued orders halting transportation out of the country of goods belonging to the United Nations mission in South Sudan (UNMISS) until Sh28.4millon owed to a Kenyan logistic firm is settled.

Mombasa-based firm Dap Logistics Ltd has been embroiled in a three-year legal tussle with a Ugandan company, Amoo Holdings International Logistics, over goods cleared two years ago.

The goods belonging to UNMISS were to be transported to the neighbouring country via Kenya. They included items for erecting makeshift homes and household items amongst others.

In her ruling, Mombasa High Court Judge Dorah Chepkwony noted that the Ugandan firm tendered no evidence to the contrary to show payment of the outstanding sum.

“I find that the plaintiff has proved the amount owed by the defendant. Consequently, judgement be and hereby entered for the plaintiff against the defendant in the sum of $284,038,” the judge ruled.

The court however declined to grant the Kenyan firm’s request where it sought for a declaration that it is entitled to dispose of the goods to settle the debt, saying the goods belong to UNMISS and that Amoo Holdings International Ltd has no proprietary rights over. Dap Logistics Ltd had moved to the court seeking payment of more than Sh34 million for transportation and clearing services.

Dap Logistics had subcontracted Kampala Juba Freighters Ltd (KJF) to clear and forward various goods belonging to the defendant and its subunits.

The company told the court that KJF carried out the work on its behalf for the defendant and its subunits and raised invoices which were partially paid for.

The Ugandan firm owned up to the debt but defended itself saying the payment was to be effected upon completion of its contract with the plaintiff.

It has however denied consenting nor giving the plaintiff authority to subcontract KJF to perform the contract. According to Amoo Holdings International Ltd, Dap Logistics Ltd was not supposed to sub-contract the works to another company without its approval.

"The defendant avers that if at all any invoices were issued by KJF as alleged, which is nevertheless denied, then the same are due and owing to the said KJF and not the plaintiff herein," the company said in its court documents.