The Joho family has long dominated port operations in Mombasa. But that grip is slipping fast. Two major decisions have upended their control. First, Kenya’s Supreme Court cancelled a multi-billion-shilling terminal license linked to them. Then, South Sudan restructured cargo allocation at the port, significantly cutting Joho’s share.
These moves aim to promote transparency and end monopoly. They also signal a shift from political favoritism toward fairer competition in Kenya’s logistics sector.
Court Blocks Sh5.8 Billion Grain Terminal Licence
In June 2025, Kenya’s Supreme Court revoked a Sh5.8 billion (about USD 45 million) licence awarded to Portside Freight Terminals Ltd, a company associated with the Joho family.
The Kenya Ports Authority (KPA) had granted the licence without using a competitive bidding process. Instead, it applied the Specially Permitted Procurement Procedure (SPPP).
Activist Okiya Omtatah challenged the decision in court. He argued that the procurement violated Kenya’s Public Procurement and Asset Disposal Act (PPADA).
A five-judge bench led by Deputy Chief Justice Philomena Mwilu agreed. The court ruled that KPA failed to show “exceptional circumstances” required to justify bypassing open tendering.
As a result, Bulkstream Ltd (formerly Grain Bulk Handlers), owned by Mohamed Jaffer, retains control of bulk grain handling at the port.
South Sudan Breaks Joho’s Freight Dominance
In a separate decision, South Sudan restructured how freight is handled at the Port of Mombasa. Previously, Autoport Freight Terminals, another Joho-linked firm, handled over 80% of cargo destined for South Sudan.
But on June 16, 2025, South Sudan’s Ministry of Trade and Industry issued a directive to change that.
Compact Freight Ltd challenged Autoport’s dominance in Kenya’s High Court. Justice Peter Mulwa upheld South Sudan’s new cargo allocation structure. The court ordered the Kenya Ports Authority to implement the changes.
Here’s the new breakdown:
- Compact Freight Ltd – 30%
- Autoport Freight Terminals – 20%
- Compact FTZ Ltd – 20%
- LPC Global Logistics Ltd – 20%
- Precision Container Freight Station Ltd – 10%
This change cuts Autoport’s share by more than half. It also opens the market to new players, ending the near-monopoly.
Political Power Meets Legal Reform
The Joho family has used political influence to grow its port businesses. Hassan Joho, the former Mombasa governor, has often been accused of using his position to gain unfair advantage.
But the court rulings show that political power alone can’t override the law. Kenya’s judiciary is holding public agencies accountable for following fair procurement processes.
The grain terminal case also shows that private citizens like Omtatah can challenge powerful interests—and win.
Meanwhile, Joho’s brother, Abu Joho, has filed a defamation suit against Bulkstream Ltd. He claims the company is behind efforts to label him a drug trafficker to block his entry into port operations.
Impact on Kenya’s Logistics Sector
These legal battles could change how Kenya handles port infrastructure and trade in several ways:
- Procurement Reforms: Public agencies like KPA must now stick to strict procurement rules. The Supreme Court ruling discourages shortcuts in the awarding of major contracts.
- Fair Competition: Cargo handling is no longer reserved for one or two firms. With more players in the mix, importers can expect better pricing and service.
- Regional Trade Shift: Mombasa handles more than 90% of South Sudan’s imports. A more balanced market increases regional confidence and strengthens trade ties.
- Legal Activism Rises: The success of Omtatah’s petition could encourage more Kenyans to challenge opaque deals in public projects.
What the Future Holds
Kenya is clearly moving toward a more accountable and transparent system. Firms with political connections can no longer count on shortcuts. Instead, they must compete fairly.
The Kenya Ports Authority will need to revise how it handles tenders. Other government agencies may also follow this model.
Investors and freight companies are watching. They’re likely to invest in a logistics sector that supports fair play and follows the law.
Read: High Court Orders Ecobank to Pay Sh284 Million to Mbiyu Koinange’s Estate
Final Thoughts
The collapse of Joho’s monopoly at Mombasa Port is more than a business story. It shows that Kenya’s institutions—especially the courts—are standing up for fairness and integrity.
The actions of South Sudan and Kenya’s Supreme Court have reshaped the rules. Political power no longer guarantees control over national infrastructure.
This new direction supports growth, regional trust, and competitive business practices. The Port of Mombasa—and Kenya as a whole—stands to benefit.
