Parking fees suits headed for joint hearing in Nairobi

Two suits filed by a private firm against the Mombasa County Government, which had stopped it from collecting parking fees are likely to be heard and determined jointly.

A judge at the Mombasa High Court directed that the file before her be transferred to Nairobi’s Milimani High Court so that the judge handling a related case could consider whether the matters should be consolidated.

In the dispute, Kenya Airports Parking Services Ltd (Kaps) claims that the county government has refused to recognise an agreement which was entered into with the defunct Mombasa Municipal Council.

It said in a private deal dated June 28, 2006 which the firm entered into with the council, the private firm was allowed to collect parking fees.

The agreement was for a period of 15 years and was to be renewed for another 10 years. Kaps was to hold a 75 per cent stake while the council was to hold 25 per cent of the shares.

This is to be revised to 65 per cent and 35 per cent at the end of the first 15 years.

Kaps says in spite of the existence of the contract, “the county government of Mombasa which came into force in March, 2013, to replace the council, has declined to honour the said agreement”.

The county government, however, said the municipal council of Mombasa did not lawfully enter into the agreement which the private firm seeks to enforce.

“It cannot be said that the alleged agreement was lawfully entered. Consequently, the county government of Mombasa is not and cannot be bound by the alleged agreement which is void, illegal and unenforceable,” said the Mombasa County Government, in response.