Economy

KPA ordered to deposit Sh80m in suit

mwembe

A commercial building demolished at Mwembe Tayari in Mombasa to pave the way for road expansion. PHOTO | KEVIN ODIT | NMG

The Kenya Ports Authority (KPA) has been ordered to deposit Sh80 million in a joint account in the name of its advocates and those of a clearing and forwarding company that has sued it for compensation over alleged loss of business.

Justice Patrick Otieno has also directed Masai Investments, which has sued KPA to file an undertaking for payment of any damages that may occur as a result of interim orders issued last month directing KPA to look into the claims against it.

“In the public interest, I allow KPA 15 days to make good the plaintiff's claim, failure to which the prayers sought will stand granted,” said Justice Dora Chepkwony. Masai Investments argues that due to the expansion of the road running from Gate 18 Kilindini harbour to Changamwe roundabout, it was forced to demolish its structure leading to business losses.

The firm says there have been several deliberations over the issue together with KPA, but the authority has declined to pay.

The case will be mentioned on October 30.