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Bulkstream Limited, a grain handling company owned by Mombasa-based businessman Mohamed Jaffer, is asserting its legal rights over wheat shipments of Ugandan importer Pan Afric Commodities, citing $1.1 million in unpaid handling and storage fees. The firm confirmed it retains a lien over 1,514 tonnes of Ukrainian wheat currently held at the port of Mombasa.
$1.1 million fees trigger wheat dispute
In a statement, Bulkstream, led by Mohamed Jaffer’s son, Mujtaba Jaffer, said it had opposed a court application by Pan Afric Commodities seeking the unconditional release of its cargo. The company explained that it had entered into a bailment agreement with the Ugandan importer, under which Bulkstream, as bailee, has the right to retain possession of the wheat until accrued fees are settled. As of September 30, the unpaid charges stood at $1.1 million.
This dispute comes more than a month after Pan Afric Commodities took the matter to court, claiming Bulkstream delayed the release of its shipments without justification. It argued that repeated requests for delivery of the wheat have gone unanswered, thus prompting a suit seeking immediate release of the cargo.
Court documents show that Pan Afric purchased 2,837 tonnes of wheat under a charter party agreement, with a Bill of Lading issued on Sept. 21, 2018. Bulkstream, which handled the shipment, is part of Jaffer’s wider logistics operations.
Mohamed Jaffer’s companies entangled in legal disputes
This dispute adds to a series of legal challenges surrounding Mohamed Jaffer’s empire. Separately, the Mombasa Law Court recently postponed judgment in a $116 million land dispute involving Mayport Limited, linked to Jaffer. Judge Lucas Naikuni of the Environment and Land Court cited a heavy docket as the reason for delaying the decision for the eighth time.
Jaffer is also engaged in a separate case over a $14 million payment to a company tied to him for land acquired for Kenya’s Standard Gauge Railway. The payment had previously been declared erroneous, but the case remains unresolved after an appeal challenged that ruling.
These disputes draw attention to the legal issues surrounding Bulkstream and Jaffer's businesses. The wheat shipment dispute highlights larger conflicts in the grain trade in East Africa between importers and logistics companies.
