KEY POINTS
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Bulkstream Limited claims $1.1 million in unpaid wheat storage and handling fees.
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The company holds 1,514 tonnes of Ukrainian wheat under a bailment agreement.
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Pan Afric Commodities has taken legal action to secure the wheat’s release.
Bulkstream Limited, a grain processing enterprise in Mombasa owned by businessman Mohamed Jaffer, is asserting control over wheat shipments of Ugandan importer Pan Afric Commodities due to outstanding handling and storage fees totaling $1.1 million. The company announced it is enforcing its lien on 1,514 tonnes of Ukrainian wheat remaining at the port of Mombasa to facilitate debt recovery.
Bulkstream’s lien over Ugandan wheat
Bulkstream, under the leadership of Mujtaba Jaffer, son of Mohamed Jaffer, announced in a statement that it has officially contested a court motion submitted by Pan Afric Commodities requesting the unconditional release of its cargo. The company indicated that the wheat shipment is retained under a bailment agreement permitting Bulkstream, as the bailee, to retain the products until all costs are settled. As of September 30, the overdue costs amounted to $1.1 million, a sum the business asserts remains underpaid despite numerous reminders to the importer.
Pan Afric Commodities has charged Bulkstream with unjustly retaining its wheat and postponing its release without just cause. The importer initiated legal proceedings last month, asserting that its demands for cargo delivery were disregarded and that the delay has impeded its trade activities.
Court documents indicate that Pan Afric purchased 2,837 tons of wheat pursuant to a charter party agreement, with a Bill of Lading filed on September 21, 2018. Bulkstream, responsible for the cargo, is a component of Jaffer’s extensive logistical network, which includes shipping, grain ports, and oil storage facilities along the Kenyan coastline.
Legal wrangle deepens around Bulkstream wheat
The conflict intensifies examination of Jaffer’s commercial interests, which have encountered numerous judicial challenges in recent years. The Mombasa Law Court has postponed judgment for the seventh time in a $116 million land dispute involving Mayport Limited, a firm associated with Jaffer. Judge Lucas Naikuni of the Environment and Land Court ascribed the postponement to a busy docket.
According to billionaire Africa, Jaffer is additionally involved in a distinct issue related to a $14 million payment for land procured for Kenya’s Standard Gauge Railway. The payment was previously deemed erroneous, although the issue remained unresolved following an appeal that contested the prior ruling.
The court proceedings collectively underscore the increasing legal challenges confronting Jaffer’s economic empire. The impasse about Ukrainian wheat highlights wider conflicts between grain importers and logistical providers throughout East Africa, as escalating trade expenses and protracted clearances persist in challenging the region’s delicate supply systems.
