Court says it has jurisdiction to hear the petition.
The CFS’s are seeking an injunction to restrain KPA from blocking or failing to release nominated cargo specified for delivery to them diverted to Kenya Railways for haulage to Nairobi by rail.
According to the freight stations, the conduct of KPA and KR to interfere with the release of cargo nominated to them and diverting it for haulage to Nairobi by KR be declared a nullity.
An association of freight stations has won the first round in a petition it instituted against the Kenya Ports Authority (KPA) and Kenya Railways (KR) over transportation of cargo via Standard Gauge Railway (SGR).
This was after the High Court dismissed a preliminary objection by the two State organisations that wanted the petition by the Container Freight Stations (CFS) Association struck out.
The CFS’s are seeking an injunction to restrain KPA from blocking or failing to release nominated cargo specified for delivery to them diverted to Kenya Railways for haulage to Nairobi by rail.
They also want an injunction issued restraining KR from receiving and transporting out of the port nominated cargo specified for delivery to them.
Through lawyers Sanjeev Khagram and Dr Wamuti Ndegwa respectively, KPA and Kenya Railways argued that the court lacks jurisdiction to hear the petition.
However, Justice Eric Ogola on Thursday said the court has jurisdiction to hear the petition and that it would be pre-emptive to rule that it (petition) is purely contractual.
“There is a nexus between the petitioners and the cargo,” said Justice Ogola, adding that the freight stations have a right to institute the suit against KPA and KR.
According to the freight stations, the conduct of KPA and KR to block and interfere with the release of cargo nominated to them and diverting it for haulage to Nairobi by KR should be declared a nullity.
Through lawyer Paul Buti, the association argued 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.
The CFS's lobby 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 is in violation of their economic rights.
