(NAIROBI) – Kenya’s High Court has temporarily upheld a directive from the Government of South Sudan that aims to reduce the dominance of a single Kenyan logistics company and spread control of its cargo across multiple firms at the port of Mombasa. The move is expected to reshape freight operations in East Africa’s busiest seaport and could cost powerful business families billions in revenue.
On Monday, Justice Peter Mulwa ruled in favour of Compact Freight Systems, one of the firms selected by South Sudan in its new cargo allocation formula. The judge ordered the Kenya Ports Authority (KPA) to enforce Juba’s June 16 directive while a wider case on the matter continues. The court directed that no freight allocations be made contrary to South Sudan’s letter until the hearing resumes on 21 July 2025.
At the centre of the dispute is a long running concern by South Sudan over freight delays, limited port access and inflated costs. South Sudan, a landlocked country that relies heavily on Kenya’s port of Mombasa for the import of goods, remains the port’s second largest transit client after Uganda. The government in Juba issued a new directive that divides South Sudanese cargo among five companies to improve efficiency and reduce monopolies.
Under the new arrangement, the five firms and their share allocations are as follows:
| Freight Company | Allocation (%) |
|---|---|
| Compact Freight | 30% |
| Compact FTZ | 20% |
| LPC Global Logistics | 20% |
| Autoport Freight | 20% |
| Precision Container Ltd | 10% |
Previously, Autoport Freight Terminals, a company linked to the family of Kenyan Cabinet Secretary and former Mombasa Governor Hassan Joho controlled up to 80% of all South Sudan bound cargo through Mombasa. This overwhelming share was supported by a Kenya Railways arrangement that granted Autoport access to the Nairobi Inland Container Depot, giving it an edge in transporting cargo via the Standard Gauge Railway (SGR).
The latest ruling trims Autoport’s share to 20%, opening the door for increased competition among logistics operators. It also underscores the growing influence of South Sudan in shaping regional logistics policy, especially as it tries to secure better deals for the movement of goods critical to its economy and citizens.
South Sudanese authorities argued that the broader participation of freight companies will ease bottlenecks at the port, speed up cargo clearance and ultimately reduce prices of consumer goods in the country, where import delays often cause shortages and inflation.
The case was brought before the Kenyan court by Compact Freight, which claimed that Kenya’s Ministry of Transport and KPA had failed to honour the cargo allocation directive issued by Juba. The company asked the court to stop any interference until the matter is fully heard and determined.
Justice Mulwa’s decision comes just days after another blow to the Joho family’s business interests. Kenya’s Supreme Court blocked the construction of a KSh6.4 billion ($49.6 million USD) grain handling facility at the port of Mombasa by Portside Freight Terminals, another Joho linked company, citing irregularities in the tendering process.
Combined, the two court decisions are seen as major setbacks to the Joho family’s ambitions to expand their footprint in the region’s lucrative logistics and shipping sector.
Observers say the ruling has wider regional implications, signalling a shift in how landlocked countries like South Sudan are asserting their interests in port infrastructure decisions traditionally dominated by Kenyan firms. With Mombasa playing a key role in the trade lifelines of countries like South Sudan, Rwanda and Uganda, these legal developments may prompt broader changes in how transit goods are managed across East Africa.
The High Court’s stay order remains in place until the full hearing scheduled for 21 July 2025, when arguments from all involved parties will be considered in more detail. For now, South Sudan’s push for more transparent and inclusive freight handling processes at Mombasa has found legal backing and possibly opened a new chapter in regional trade relations.
