Ugandan businessman Tom Mugenga has won a major legal battle against the Kenyan government, ending a case that has lasted nearly twenty years.
Mugenga, the owner of Mugenga Holdings, Voice of Muhabura FM, and a former Crane Bank director, was among sixteen Ugandan companies that sued Kenya for damages suffered during the 2007/2008 post-election violence.
The Kenyan Court of Appeal ruled in their favor, ordering the government to pay $16.955 million (about UGX 59 billion) to Mugenga Holdings as compensation for the destruction and losses his company suffered.
Mugenga told the court that he lost eight trucks during the chaos and had to sell property in Mombasa to pay off debts. The court awarded $16.8 million in special damages for the destroyed assets and another $155,000 (KSh 20 million) for property that was confiscated.
The case was filed by sixteen Ugandan transport and logistics companies, including Intraspeed Logistics Ltd, Dooba Enterprises Ltd, and Wilbex Uganda Ltd, against Kenya’s Attorney General and Inspector General of Police.
The firms accused the Kenyan authorities of failing to protect foreign-owned businesses during the violence that followed the disputed 2007 presidential election.
Their operations, which linked Mombasa Port to Uganda, Rwanda, and the DRC, were severely disrupted, with more than twenty trucks and cargo consignments destroyed or looted.
The ruling is being hailed as a landmark victory for regional investors and a strong reminder of the need for governments to protect cross-border trade and investment.
