Published On: Sun, Jul 29th, 2018

Kenya tax payers ordered to pay Uganda, Rwanda firms $63m for poll chaos losses

A Kenyan court has ordered the government to pay 16 Ugandan and Rwandan companies $63 million as compensation for trucks and goods lost during the 2007-2008 post-election chaos.

The ruling by High Court judge Msagha Mbogholi on Friday is the single largest award to be made in the poll chaos cases.

The 16 traders, operating under the East African Freight Forwarders Association, have been pushing for compensation for the past 10 years.

The traders said they lost trucks and goods along the Northern Corridor that links the port of Mombasa to Uganda, Rwanda and the Democratic Republic of Congo.

In the case filed in 2010, Kampala City Traders Association, Katraco Uganda, Intraspeed Logistics and Mugenga Holdings said they lost 22 heavy-duty trucks that were destroyed in the chaos. Other companies that joined in the suit were Dooba Enterprises, Willex Uganda, Sebco Uganda, KPI Ltd, Bunyonyi Safaris, Seven Hills Impex, Uganda Agricultural Tools, Board City, Bidco Uganda and businessmen Suleiman Bateganya, David Musana and Arthur Turyahikayo.

The traders had sought $47,557,081 in compensation

In his ruling, judge Mbogholi said the traders had proved the loss of trucks and goods through arson attacks and theft.

The Kenyan government was blamed for failing to provide adequate security as required under the United Nations Convention on Economic, Social and Cultural Rights that compels states to guarantee security of goods transiting through their countries. 

“There is no doubt whatsoever that they lost some business as a result. It is now almost 10 years from the time the cause of action arose,” Mr Mbogholi said.

“It is hard to say how long those vehicles would have remained on the road doing the same business for the benefit of the plaintiffs.”

The $63 million award was arrived at after the initial claim was adjusted for inflation and interest.


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Kenya tax payers ordered to pay Uganda, Rwanda firms $63m for poll chaos losses
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