Allies sucked into tycoons' trade war

The battle over the multi-billion cargo handling business at the Port of Mombasa is behind a suit filed by tycoon Abubakar Joho, ‘Abu’, against an employee of Grain Bulk Handlers Limited (GBHL). 

Michael Oloo, a lawyer, has told the court that Abu sued Matilda Kinzani, a GBHL employee, for defamation because she was the personal assistant to the firm’s chairman, Mohamed Jaffer. 

Mr Oloo informed Senior Principal Magistrate David Odhiambo that Abubakar and Kenya Railways (KR) Managing Director Philip Mainga dragged Jaffer into the lawsuit due to business rivalry. 

Oloo said Mainga collaborated with Abubakar to defame Jaffer over port business rivalry. Abubakar is the elder brother of Cabinet Secretary for Mining and Blue Economy Hassan Joho. 

Abubakar and Joho are linked to the ownership of AutoPort Container Freight Services Ltd, a cargo-handling logistics company that deals in fertiliser and real estate, among other businesses. 

Jaffer, a port handling business mogul, has investments in port logistics businesses, including the modern bulk grain and fertiliser handling terminals at Mombasa port. The two are archrivals. 

Last Friday, Oloo, who is Jaffer’s lawyer, told the senior principal magistrate, during a case heard in the chambers, that Mainga allegedly drafted the defamatory letter and forwarded it to Abubakar.  

“He (Abubakar) said there was business rivalry in the port fertiliser business. It must be a scheme of the KR MD (Mainga) and Abubakar to get back at Jaffer,” said Oloo. 

Ms Kinzani is charged under the notorious Computer Misuse and Cyber-crimes Act for publishing false information. She is accused of falsely claiming in a WhatsApp group that CS Joho and his brother defrauded Mombasa County government of over Sh40 billion. 

On May 23 this year, Abubakar told the court how Kinzani labelled him a drug dealer and land grabber, allegedly because of the business rivalry with Jaffer. 

“You cannot parade me on the Internet and destroy my family’s and children’s reputation because of business competition from my business rival.  When you accuse me of selling drugs by placing them in rice, accuse me of aiding my brother to steal Sh40 billion while he was a governor of Mombasa and that my company stole land, you are spoiling my reputation and business,” said Abubakar in court. 

Abubakar told the courts that Mainga alerted him of a letter circulating on the Internet accusing him of drug dealing, land grabbing and stealing of containers. 

However, Oloo said Abubakar’s testimony in court that Jaffer used Kinzani to defame him was an afterthought because he never recorded the same with the police.  

According to Abu’s testimony, the port rail and fertiliser businesses are the reasons for their rivalry that has spanned decades. 

Abubakar told magistrate Odhiambo that Jaffer was not happy with his entry into the port rail business and that Jaffer has enjoyed a three-decade monopoly in the port logistics and fertiliser business. 

“Jaffer is my business rival, and he deals in fertiliser like me. We compete in port and rail services and handling cargo,” he told the court. 

An Anti-Terror Police Unit (ATPU) investigations officer testified that Mainga presented the defamatory letter to Abubakar. 

The officer told the courts that the forensic report revealed that Kinzani, an employee of Grain Bulk Handlers, had authored the letter.

 “The accused (Kinzani) implicated Abubakar in various grabbing of Kenya Railways land, being involved in drug trafficking and stealing of containers. The allegations were circulated on social media (WhatsApp) and were brought to his attention by the Kenya Railways managing director,” he said. 

However, Oloo questioned why ATPU officers were tasked with investigating an offence outside their mandate. 

“The false publication did not amount to an imminent terrorism attack. Why would seven ATPU officers investigate one lady accused of false publication?” said Oloo.