A Tanzanian dealer has won a Sh860 million compensation over a consignment lost during the 2007-2008 post-election violence in a landmark case that could open a floodgate of similar suits against the Kenyan government.
The High Court in Mombasa ordered Kenya Ports Authority (KPA) to pay Modern Holdings East Africa (Masafi) the amount after it was found to have mishandled 21 containers of fruit juice and mineral water that consequently denied the importer any profits that was to accrue from sale of the products.
The suit is one of the first successful claims from the political turmoil that paralysed business in Kenya and the larger East Africa region for nearly two months, and could open the door for other firms to lodge claims for lost business opportunities during the chaos.
The political turmoil brought businesses to a halt, culminating to huge losses that ended with the signing of a power sharing deal between former president Mwai Kibaki and ex-prime minister Raila Odinga.
Sixteen firms from Uganda and Rwanda have separately sued the Kenyan government, seeking Sh4.7 billion for goods and property destroyed during the turmoil.