A clearing and forwarding company linked to Kanu chairman Gideon Moi has told the court that negotiations between itself and Kenya Railways Corporation (KRC) for an out of court settlement in relation to a dispute over parcels of land where it conducts its business in Mombasa have failed.
Through its lawyer, Kencont Logistics Services Ltd, on Thursday October 15, 2026, told the Environment and Land Court that negotiations had failed and that there was need to continue with contempt proceedings against KRC’s Managing Director Mr Philip Mainga and Security Officer, Eastern region Mr Hussein Yusuf.
The lawyer told the court that they had confirmation from their client, Kencont Logistics Services Ltd, that negotiations had failed thus the need for a date to be issued for parties to appear in court.
However, KRC’s lawyer told the court that he did not have information that negotiations had failed as parties were negotiating directly between themselves.
The court directed the lawyer to confirm with his client, KRC, if negotiations had failed and fixed the case for mention on November 18.
On January 29, the court had issued summons to Mr Mainga and Mr Yusuf to appear in court to show cause why they should not be committed to civil jail or fined for contempt.
The court ruled that the act of locking the logistics company business premises with a chain and padlock and posting armed police officers was clearly aimed at interrupting and interfering with the company’s operations contrary to orders issued by court.
On May 19 last year, the court had issued an order of injunction restraining KRC from demolishing a perimeter wall of the parcels of land, evicting the logistics company and interfering with the company’s lease ownership, occupation and use of the properties.
The orders had been issued pending hearing and determination of an application for conservatory orders filed by Kencont Logistics Services Ltd.
In its ruling, the court said that when it issued the orders, KRC was under obligation to obey them even if it was of the view that the logistics company landlords did not acquire their titles procedurally from itself.
“The defendant did not do so and continues to keep its uniformed and armed police officers and security guards on the premises,” ruled the court before issuing summons to Mr Mainga and Mr Yusuf.
In the main case, Kencont sued KRC saying that the corporation does not have any rights or interest on the parcels of land.
This, Kencont says, is as a result of KRC having sold them to Flagship Holdings Ltd and Josgid Ltd who have held the title deeds from 1997 and 1996 respectively and are holding them to date.
The company says that it holds valid, current and running lease with the registered owners of the land; Flagship Holdings Ltd and Josgid Ltd.
Kencont also says that by reason of the respective leases, it has the right to occupy and use the properties.
According to the company, on May 16 last year in the evening, KRC employees or representatives accompanied with a contingent of police descended on the properties and demanded that the perimeter wall be demolished and that it leaves the property.
Kencont also says that KRC employees or their representatives then marked the perimeter wall with writings and graffiti.
It further says that on May 17, the defendant through its employees or representatives returned to the properties with a bulldozer accompanied by a contingent of police officers with the intention to demolish the perimeter walls and to evict it.
“There is a likelihood that the defendant or employees may descend upon the properties, demolish the perimeter wall and evict the plaintiff,” says Kencont in its suit papers.
Kencont says that it does clearing and forwarding business and storage of transit goods on the parcels of land and that if KRC proceeds with threatened eviction and demolition of the perimeter wall then goods and items it is storing in the yard will be damaged or get lost.
It wants a declaration issued that Kenya Railways is not the owner and has no rights whatsoever over the parcels of land.
Kencont also wants a permanent injunction issued to restrain Kenya Railways or its employees from demolishing the perimeter wall of the properties, evicting it and from generally interfering with its lease, ownership, occupation and use of the parcels of land in Mombasa.
It also wants the officer commanding station (OCS) Mbaraki police station or Central police station or any nearest police station to ensure compliance of the court order and that peace, law and order is maintained at all times when the order is in force.
In an affidavit filed in court, KRC says that there was no board or ministerial approvals for the sale of the parcels of land where the logistics company conducts its business in Mombasa.
KRC says that the prerequisites for the disposal of the land were not complied with in the alleged sale of the parcels of land and that the transactions were entirely fraudulent.
The corporation says that the parcels of land are necessary for the operation of the railway.
“The continued use and occupation of the property by the plaintiff (Kencont Logistics Services Ltd) is greatly prejudicial to the defendant (KRC) who is in the process of commencing works along the railway line,” part of the affidavit states.
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