Firms rush to court over forced SGR use

The Kenya Railways commercial cargo train. FILE PHOTO | NMG

What you need to know:

  • Container freight stations wants an injunction issued restraining Kenya Railways from receiving their goods from KPA.
  • They say KPA and Kenya Railways are conniving to block and interfere with the release of cargo nominated to them and diverting it for haulage to Nairobi by rail.
  • KPA argued that there is no right to protection of the freight stations saying out of the fifteen only two are licenced.

An association of freight stations is seeking an injunction restraining the Kenya Ports Authority (KPA) from blocking or failing to release to its members nominated cargo for delivery via the Standard Gauge Railway (SGR) to the Inland Container Depot, Nairobi.

The Container Freight Stations Association of Kenya also wants an injunction issued restraining Kenya Railways (KR) from receiving their goods from KPA and transporting out of the port nominated cargo for delivery to its members in violation of their rights to receive the cargo.

According to the lobby representing 15 freight stations, the conduct of KPA and KR in conniving to block and interfere with the release of cargo nominated to them and diverting it for haulage to Nairobi by rail must be declared a nullity.

Through lawyer Paul Buti, they argue that the conduct and impunity with which the respondents have blocked and diverted nominated cargo for delivery to the petitioners unto themselves for transport to Nairobi amounts to failure to appreciate the Constitution.

However, through their preliminary objections, KPA and KR opposed the suit by the freight stations saying the court lacks jurisdiction to hear it and that the petitioners do not have locus standi (right to appear before court).

In its objection, KPA through lawyer Sanjeev Khagram argued that there is no right to protection of the freight stations saying out of the fifteen only two are licenced.

Mr Khagram told Justice Eric Ogola that KPA has invested Sh327 billion for a second container terminal hence creating immense capacity for the port.

The court heard that if there is any cause of action it can be on contractual claims between KPA and the CFS’s.

“I urge the court to uphold the preliminary objection and struck out the petition with costs to the respondents,” said Mr Khagram on Tuesday.

On his part, Dr Wamuti Ndegwa - representing KR - told the court that the freight stations do not have locus to file the petition in court.

“There is no constitutional issue, the petitioners are not entitled to be here in court,” said Dr Ndegwa.

Dr Ndegwa told the court that the petitioners are not agents of shippers or consignees for purposes of filing the suit.

“If they intended to bring the petition, they were not entitled to have it in a constitutional court,” argued Dr Ndegwa.

The freight stations are also seeking a mandatory injunction directed to KPA to immediately release for delivery to the petitioners all nominated cargo specified in all Bills of Lading for delivery to them.

It is also seeking a declaration that the conduct of KPA and KR to divert nominated cargo that is specifically designated in a Bill of Lading for delivery to the freight stations for it to be transported via rail to Nairobi is in violation of their economic rights.

The court will deliver its ruling in relation to the preliminary objections raised on April 30.

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