Court shreds Joho’s secret port deal in major blow to his business empire

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The Supreme Court has nullified a Sh5.8 billion grain handling deal awarded to the Joho family, in a ruling that sends a strong message against corruption and backdoor deals at Kenya’s key economic gateways.

Portside Freight Terminals Limited, a company tied to former Mombasa Governor Hassan Joho and his family, had been handed the lucrative licence to set up a second bulk grain facility at the Mombasa Port without following due process.

The five-judge bench made it clear that the Kenya Ports Authority (KPA) violated procurement laws by awarding this contract without open competition, going against Article 227 of the Constitution.

This ruling lays bare how Joho and his associates have used political power to benefit financially, ignoring the law and shutting out fair business competition.

The contract was not just about building a grain terminal it was a blatant move to create a private empire using public resources. The Court of Appeal had earlier supported this deal, but the Supreme Court has now firmly reversed that decision, reaffirming the constitutional requirement that all public procurement must be fair, transparent, and cost-effective.

That principle was completely ignored when KPA handed the deal to Joho’s company without allowing other firms a chance to compete. It’s now clear that the Joho family was attempting to muscle its way into a critical sector that affects food security and pricing in Kenya.

If allowed to proceed, the Portside project would have disrupted operations, led to increased costs for consumers, and concentrated even more economic power in the hands of one politically connected family.

Instead of empowering ordinary businesses through fair opportunity, this deal was designed to benefit Joho and his allies, while excluding others through shady shortcuts.

The court’s ruling also indirectly protects Mohamed Jaffer’s operations, which despite being a monopoly remain in place because at least they were not set up through unconstitutional processes. The focus, however, is not on protecting monopolies but ensuring that if a second grain handler must be introduced, it should be done transparently and competitively, not through political influence and boardroom deals.

Joho’s fall from grace in this case should be a warning to other political figures who believe they can bend public institutions to serve their private interests.

He may have enjoyed years of unchecked influence in Mombasa, but this decision proves that even powerful names can be held accountable when the law is applied properly.

The port belongs to Kenyans, not to individuals looking to enrich themselves at the country’s expense.

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