Court sides with KMA in licence dispute with shipping company
Ships docking at the port.
The High Court has dismissed an application by a shipping agency seeking to compel the Kenya Maritime Authority to issue it with a shipping licence.
Justice John Mativo said the court could not direct KMA to grant licences if Zam Zam Shipping Ltd does not meet the legal requirements.
He ruled that issues raised by KMA - among them that they were still vetting the shipping company - were relevant so that the agency could reach a just decision.
“The questions raised in my view are consistent with their statutory mandate. In fact, there is no argument before me to suggest that the respondents (KMA) acted outside their mandate or exceeded it,” said Justice Mativo.
Zam Zam, the court said, had not demonstrated illegality or procedural impropriety.
The judge also ruled that the argument that there are security concerns, a pending criminal trial and the firm’s failure to disclose information were sufficient to compel the court not to exercise its discretion in the company’s favour even if the grounds for the application had been established.
Justice Mativo also noted that the court’s discretion would not be exercised to impede an authority’s ability to perform its functions or where the judge considers that an alternative remedy could have been pursued.
Zam Zam sued KMA and its board of directors, accusing them of failing to issue it with shipping licences for 2019/2020 though it said it satisfied all requirements and provided the required documents.
The company also told the court that KMA was obligated to adhere to the Constitution, which guarantees everyone fair administrative action that is expeditious, reasonable and lawful.
For its part, KMA told the court that licences are issued subject to an applicant adhering to all the requirements, including security clearances.
The agency also told the court that before receiving the licence renewal application for 2020, it obtained a confidential brief from the National Intelligence Service indicating that there was adverse reporting against the shipping company.
The company, KMA said, was yet to provide a certificate of good conduct for one of the company’s directors.
KMA also argued that a background check on one of the shipping company’s managers revealed that he had been charged with trafficking narcotic drugs in a Magistrate Court in Mombasa.
The agency said that in view of the revelations, a more detailed review of the company’s application was needed and a decision had not been made as the vetting was still going on.
