An association of freight stations won the first round in a petition it has instituted against Kenya Ports Authority (KPA) and Kenya Railways (KR) over transportation of cargo via standard gauge railway (SGR).

This was after the High Court dismissed an objection by the two State-owned organisations which wanted the petition by the Container Freight Stations (CFS) association struck out.

The CFS want the court to issue an injunction restraining KPA from failing to release cargo specified for delivery to them and diverting it to KR for haulage to Nairobi by SGR or any other means to their exclusion.

COURT

They also want an injunction restraining KR from receiving and transporting goods from KPA in violation of CFS’s rights to receive the cargo pursuant to internationally recognised contract in the Bill of Lading.

On Thursday, Justice Eric Ogola said the court has jurisdiction to hear the petition and that it would be pre-emptive to rule that the petition is purely contractual.

“There is a nexus between the petitioners and the cargo,” Justice Ogola said, adding that the freight stations have the right to institute the suit against KPA and KR.

JURISDICTION

CFS wants the conduct of KPA and KR in conniving to block and interfere with the release of cargo nominated to them and transporting the same to Nairobi by KR 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 amounts to failure to appreciate the constitution.

Through lawyers Sanjeev Khagram and Dr Wamuti Ndegwa respectively, KPA and KR argued that the court lacks jurisdiction to hear the petition.

“I urge the court to uphold the preliminary objection and strike out the petition with costs to the respondents,” Mr Khagram had urged the court.

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

The case was fixed for hearing on May 23.