Ugandan firm sues Mombasa Grain Handler over detained wheat imports
While part of the consignment was cleared, 1,514 metric tonnes remain in storage under Bulkstream Ltd’s control
UGANDA – A Ugandan-based commodities importer, Pan Afric Commodities Ltd, has filed a lawsuit against Mombasa’s Bulkstream Ltd, formerly known as Grain Bulk Handlers Ltd, over the prolonged detention of 1,514 metric tonnes of wheat at the Port of Mombasa.
The importer claims the shipment, imported from Ukraine, has been delayed despite repeated demands for release, leading to significant financial losses. Pan Afric Commodities is seeking a court order for the immediate handover of the consignment.
According to court documents, Pan Afric Commodities Ltd purchased approximately 2,837 metric tonnes of Ukrainian wheat in September 2018, which was shipped to Mombasa under a charter party agreement and a bill of lading dated September 21, 2018.
While part of the consignment was cleared, 1,514 metric tonnes remain in storage under Bulkstream Ltd’s control, allegedly due to unresolved disputes tied to import taxes and customs duties with the Uganda Revenue Authority (URA).
The plaintiffs, including Pan Afric’s directors Mohammed Hamid and Abdelateef Mohamed, argue that the detention is unjustified, citing that a receivership proceeding against their company in Uganda has no legal bearing on assets held in Kenya.
In a sworn affidavit, Hamid stated that Bulkstream Ltd was repeatedly informed of the extraterritorial limits of the Ugandan receivership but has refused to release the wheat, resulting in mounting storage costs, deteriorating cargo quality, and lost profits.
The lawsuit seeks a court order for the unconditional release of the detained wheat, alongside compensation for the financial damages incurred. The case underscores ongoing challenges in the region’s grain import sector, particularly at the Port of Mombasa, a critical hub for East African trade.
Bulkstream Ltd, which has faced scrutiny in the past over its dominant role in port grain handling, is also embroiled in separate legal disputes with other importers, though those cases are unrelated to this filing.
As of October 7, 2025, the High Court in Mombasa has yet to deliver a ruling, and the outcome could set a precedent for handling similar disputes at the port.
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