Kenya Insights

Tag: Grain Industries Limited (GIL)

  • Grain Bulk Handlers Unable To Unable To Explain How Client’s Wheat Was Destroyed In Multibillion Suit

    Grain Bulk Handlers Unable To Unable To Explain How Client’s Wheat Was Destroyed In Multibillion Suit

    The hearing of the multi-billion grain tussle between Atta Kenya Ltd and Grain Bulk handlers resumed on Wednesday this week with two witnesses being put to task to explain how 29,500 metric tonnes of wheat was disposed.

    In the case, Atta Kenya has sued Grain BulkAtta Kenya has sued Grain Bulk and others for illegally selling their wheat.

    Appearing before High Court Judge Florence Macharia, two witnesses from the sued companies were put to task to explain how the auction price was arrived at and who authorized the sale of the milling wheat.

    Atta limited lawyer Mila Bwire, wanted to know what exactly transpired during the receivership of the wheat consignment to its sale.

    In the case, Atta Kenya wants the court to declare the sale of the wheat illegal and surcharge Grain Bulk Handlers Limited, Commissioner – Customs and Border Control, Beyond Auctioneers, Grain Industries Limited and Oloo and Chatur Advocates.

    Atta Kenya claims it entered into an agreement with Louis Dreyfus company limited for the purchase of 38,500 metric tons of milling wheat.

    29,500 metric tons was to be delivered to Atta Kenya limited, where the payment for the shipment was done in June 2014 to LDCL totaling 7.565 million dollars.

    However, they fell behind in paying the required customs duty and storage fees owed to the Commissioner – Customs and Border Control and the second defendant Grain Bulk handlers.

    According to court documents, while the matter was under review by all the parties Atta Kenya limited received a letter that, the consignment had been sold by Beyond Auctioneers to Grain Industries ltd at a total cost of Sh 217.48 million way below the market value of Sh 730.3 million

    The case will be mentioned on 14th March 2024.

  • Besieged Gas Tycoon Dumps Raila For Rigathi

    Besieged Gas Tycoon Dumps Raila For Rigathi

    Mohammed Jaffer of Grain Bill Handlers Limited (GBHL) and proprietor of Pro Gas been forced to fold abs embrace the Kenya Kwanza government. The billionaire who has enjoyed the monopoly of controlling Mombasa port and liquified gas industry, winning multibillion contracts, got in the bad books with the current regime that saw president Ruto bring in Tanzanian business mogul Rostam Aziz to counter the competition.

    President William Ruto (right) and Taifa Gas Group Chairman Rostam Aziz during the ground-breaking ceremony of the 30,000-tonne plant at the Dongo Kundu Special Economic Zone in Likoni, Mombasa on February 24, 2023.

    In the plans, Mr. Aziz who reportedly financed Ruto’s campaigns is set take over the gas industry that Jaffer has been controlling in the past. The cheap gas is set to hit the markets according to Ruto’s announcement.

    However, Jaffer who’s been able to court different regimes since Moi for survival is keen to maintain his grip in the market. He’s recently been reported to be shifting his allegiance to the Kenya Kwanza government and held different meetings to square up their differences.

    In what could perhaps be one of the clear signs that the tycoon is in good books with GoK is the latest lowering of unga prices that has been a source of headache to the government abs one of the reasons the Raila’s Azimio led opposition has been banking on against the state in their demonstrations that are set to resume in May.

    Through his firm Grain Industries Limited (GIL) Jaffer’s affiliated Maize brands Umi & Ajab have drastically reduced their prices. Mohamed has an upper hand in handling grains through GBHL that handles most imports through Mombasa Port.

    His alignment with the state hasn’t gone down with critics who alleges he’s being for political scoring.

    With Taifa Gas making inroads into the country, many are waiting to see how the empire of Jaffer will stand the tear of time and maintain their hold of the market. Previously, the idea of cheap gas was fought down with corrupt state officials. Pro-Gas penetrated the market at the time with cheaper gas prices. He owns Sea Gas too.