By:Rhoda Bogeta
https://youtu.be/Ugd-LG2TjNI?si=OkFguZag2-e2g_7T
A Mombasa-based energy company has moved to court seeking to lift orders barring it from occupying several multi-million-shilling properties in Nairobi and Mombasa.
Mahadi Energy Limited claims the orders were obtained fraudulently and without full disclosure of material facts.
The company and its director, Ibrahim Hussein Mahadi, have asked the Environment and Land Court in Nairobi to set aside the orders that stopped them from accessing four prime properties located in South C, Pangani, and Mainland North, Mombasa.
Through lawyer Danstan Omari, Mahadi Energy argues that the ex parte orders issued on October 23 were secured through material non-disclosure and have caused the firm immense financial losses.
The disputed orders were granted in favour of Shabeel Project Services Limited, which claims to have lawfully purchased the properties during auctions held in August and September 2024.
However, Mahadi Energy insists the auctions were illegal and conducted fraudulently. The firm contends that no statutory notices were issued, and some of the properties allegedly sold were never charged to the bank that carried out the auction.
“The orders were obtained through concealment of material facts and amount to forum shopping. We are asking the court to restore the status quo until the main petition is determined,” the company states in its court papers.
According to court documents, Mahadi Energy borrowed KSh631 million from Premier Bank Limited, formerly First Community Bank, between 2011 and 2017, under Islamic finance principles that prohibit interest.
Mahadi further claims the bank inflated repayment demands despite the company having already paid over KSh530 million through rent, direct payments, and compensation from the National Land Commission.
The company has also filed a constitutional petition in Mombasa, where Justice Gregory Mutai earlier this month issued conservatory orders restraining any interference with the same properties.
Mahadi Energy now wants the Nairobi court to lift the restraining orders, arguing that the properties are key to its petroleum importation, storage, and distribution operations.
