(MOMBASA) — The High Court in Kenya has dealt a significant legal blow to the business interests of the Joho family after it allowed a rival logistics firm to challenge their dominant role in handling South Sudan’s cargo through the port of Mombasa.
Justice Peter Mulwa ruled in favour of Compact Freight, which is now seeking to enforce a directive from the Government of South Sudan. The directive, issued on 16 June 2025, mandates that cargo destined for South Sudan be handled by five logistics companies rather than two, with the Joho family linked Autoport Freight Terminals seeing its share reduced from 80 percent to 20 percent.
Compact Freight challenged the Kenyan government for allegedly ignoring Juba’s instruction, a move that, if implemented, would significantly impact Autoport’s revenue, potentially costing the Joho family billions of Kenyan shillings. At current rates, KSh 1 billion equals approximately USD 7.81 million or SSP 35.93 billion.
The judge ordered the Kenya Ports Authority (KPA) to comply temporarily with the cargo distribution formula set by the South Sudanese government, pending further court instructions expected on 21 July 2025.
This legal dispute comes shortly after the Supreme Court separately blocked the Joho family’s attempt to construct a KSh 6.4 billion (USD 50 million / SSP 230 billion) second bulk grain terminal at Mombasa port via their company, Portside Freight Terminals. That facility would have challenged the long standing monopoly held by businessman Jaffer Mohamed.
The Supreme Court cited irregularities in the tender process and the unusual speed at which Portside received the nod through special procurement as grounds for halting the project. The decision has intensified a commercial contest between the Joho family’s expanding ventures and Jaffer Mohamed’s established dominance in the port logistics sector.
The High Court’s latest ruling also temporarily enforces Juba’s proposed cargo allocation structure, which divides the seaborne cargo as follows:
| Company | Cargo Share |
|---|---|
| Autoport Freight | 20% |
| Compact Freight | 30% |
| Compact FTZ | 20% |
| Precision Container | 10% |
| LPC Global | 20% |
Justice Mulwa ruled that “any allocations of cargo handling ratios by the Cabinet Secretary for Transport and KPA contrary to the request contained in the letter from the Government of South Sudan dated June 16, 2025, are stayed pending further directions.”
In that official communication, South Sudan’s Minister of Transport, Akol Ajawin, cancelled the earlier agreement that gave Autoport the lion’s share of Juba’s cargo. The letter to Kenya’s Transport Cabinet Secretary Davis Chirchir said the previous arrangement had led to delays, auctioning of cargo, and disruptions that affected not only commercial goods but also sensitive consignments, including those belonging to the United Nations.
South Sudan, a landlocked country, relies heavily on the Mombasa port for imports of fuel, food, and construction materials. The port also serves other inland neighbours, including Uganda and Rwanda. According to the latest cargo data, South Sudan is the second-largest transit user of the port after Uganda.
| Country | Share of Transit Cargo | Volume (Million Tonnes) |
|---|---|---|
| Uganda | 65.6% | 8.72 |
| South Sudan | 12.7% | Approx. 1.69 |
| Other Countries | 21.7% | Approx. 2.87 |
Compact Freight has accused Kenya’s Ministry of Transport and KPA of failing to respect Juba’s lawful request. “The respondents have refused, neglected or otherwise failed to discharge their statutory duties regarding the implementation of the official wishes of the Government of South Sudan,” said the firm in its petition.
Autoport Freight previously secured the South Sudan contract through its partnership with Kenya Railways, which granted it a terminal at Nairobi’s Inland Container Depot, linked to the Standard Gauge Railway (SGR), allowing efficient cargo evacuation from Mombasa. The firm is led by Abu Joho, elder brother to former Mombasa governor Hassan Joho.
The cargo handling issue emerged as a political flashpoint after President William Ruto’s election victory in 2022, which displaced a coalition that included Raila Odinga, a long-time ally of the Joho family. The election shifted expectations around key commercial contracts, including rail and port infrastructure agreements.
In a move to stabilise relations and broaden support, President Ruto later nominated political allies of Odinga, including Joho, into government roles. But the current legal developments indicate that commercial reforms demanded by neighbouring countries like South Sudan are now challenging entrenched interests.
The growing influence of Juba in the port affairs shows South Sudan’s expanding assertiveness over trade routes. For South Sudan, diversified logistics partnerships are viewed as essential to reducing transport costs and ensuring steady supplies of critical goods, amid economic challenges and rising consumer prices.
